Can i 1099 all my employees?

Question

im a new owner & we'll only have 2 f/t employees and maybe 2 p/t

Answer 1

If you want to control your employees, then you cannot give them 1099's.

If you want to just tell them what you want done and let your "employees" decide when to work, where to work, how to work, what to use and how to use to get the job done, then you might be able to get away with treating them as independent contractors and giving them 1099's.

However, if you want to control when they work, where they work, how they work, what to use and who works on the project, then you must treat them as employees, issue them paychecks, deduct taxes and fill out all those payroll tax forms.  

FYI - the IRS and the states are starting to crack down on employers who 1099 their employees, instead of giving them W-2's.  Michigan was the first state to enter into an agreement with the IRS last fall to share information about 1099's.  The IRS wants its social security and unemployment money and the states want their unemployment money.  Plus they are looking out for the employees welfare - if they are employees they get worker's comp and unemployment benefits.

Answer 2

No, you can't.  The IRS wants not only the FICA taxes owed, but federal unemployment taxes.  And another thing about the IRS, they don't want it all at April 15th... they want pieces of the taxes throughout the year.