[wroyglenda]

If I 1099 each of my employees am I still liable for unemployment taxes?:confused:

[Booky]

If you hire employees, you pay them a payroll and report their wages on a Form W-2. You are responsible for withholding all Federal Taxes and payment of Federal, State and local employment taxes.

Only subcontractors and commissioned sales people are given Form 1099 by a company as a general rule. If you control where they work, when they work and how they do the work, then they are employees, not subcontractors.

Be very careful here when you are given advice to give out Form 1099 instead of treating as employees. You could find yourself in very deep trouble with the IRS if they should audit and find that you were not paying your employees as employees. If you are in doubt, call and ask the IRS or your state employment department for their definition of what an employee is. There are very specific rules on this.