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Just curious -- why a W-2 for your son and 1099s for "the other subs" who work there?


The other subs are self-employed contractors, and meet the definition of a contract worker where they are the expert, and they take no direction from DH in terms of the work to be done. Think plumber, electrician, and that sort of thing. DH brings these subs into the job. They size it, bid it, and get it done at their own discretion with little direction from DH other than here's the job site.

DS is definitely not self-employed or a contractor in the sense that the IRS defines. He takes full direction from DH, and as such, he has to be treated as a full employee. Therefore, he gets a W-2 instead of a 1099.

It's a fine line distinction, and doesn't make a lot of difference to DH in terms of bookkeeping or anything else.
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