Are Your Recruiters W-2 or 1099?

Dear Barb,

I have my recruiters all working on a 1099 and at a recent conference I heard you say that they may not qualify as an independent contractor. Can you explain further?

Stephen Z.
New Orleans, LA

Dear Stephen,

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Talk this over with your accountant and go to IRS.gov and print out the various requirements which must be met in order for someone to qualify as a 1099 employee. If they do not meet 100% of the qualifications listed, you need to deduct payroll taxes. Better safe than sorry.

Barbara J. Bruno, CPC, CTS

Barb Bruno, CPC, CTS, is one of the most trusted experts, speakers, and trainers in the Staffing and Recruiting Professions. If you want to receive FREE training articles from Barb, sign up for her NO BS Newsletter! Barb has spent the last twenty years focused on helping Owners, Managers, and Recruiters increase their sales, profits, and income.

Her Top Producer Tutor web-based training program jumps-starts new hires and takes experienced recruiters to their next level of production. Barb's cutting-edge program, Happy Candidates, provides you with a Customized Career Portal in less than 10 minutes. Happy Candidates allows you to help the 95% of candidates you don?t place and eliminates the greatest time waster in your business.

If you'd like to contact Barb, call (219) 663-9609 or email support@staffingandrecruiting.com.

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1 Comment on “Are Your Recruiters W-2 or 1099?

  1. This question needed more than a 50 word response. This is one of the top concerns for any person who owns a firm. Anyone who has consulted a CPA on this matter will get a different shade of grey every time. And the response “better safe than sorry” isn’t feasible or realistic for many owners without an influx of cash or a substantial line of credit to transition consultants to employees. Peel back the onion- It’s not just the IRS, local state Labor Boards can have a secondary and problematic viewpoint. How about information to protect firm owners and help create ethical and meaningful protocol to abide by the law and safeguard the firm from litigious circumstances?

    A fantastic question was asked- Hoping for more follow-up in the future.

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