Hi... Ive started a small business.. I was under the WRONG impression I could 1099 my 2 guys as casual labor... That didn't work out so well! I have recently fired one such person for insubordination,unexcused absences and being late repeatedly. So he goes to the unemployment office and signs right up. Well the tax division of such office gives me a ring, informs me that the 12 month or 1000 hour rule does not apply to S.C. residents and that he would be considered an employee. So on to my question... How would I go about collecting that employees 8.5 percent taxes on his total earned wages for the year when he left on NOT good terms. Or am I stuck footing the bill having learned a costly mistake?
Please help
Andrew