Asked by Passaic_Sparky · Sep 13
4 years in, service and panel swaps. got an offer from a shop in wayne, more per hour than i make now, but they want me as a 1099 'independent contractor' and i'd use my own van, my own tools, my own gas. i'd still be on their schedule, in their shirt, running their calls. idk if that's normal or a way to skip paying for stuff. anyone done 1099 in the trades in nj?
Not legal advice, just how I'd look at it: NJ is strict about who counts as an independent contractor. As far as I know, the state uses a test where, among other things, you have to be free of their control and actually running your own independent business. Their schedule, their shirt and their calls sounds like an employee to me. Read the NJ Department of Labor's material on misclassification, or talk to an accountant, before you sign anything.
Honestly, there are legit 1099 setups in this trade, but they look like a guy with his own license and his own customers subbing for someone. Not a 4-year tech in the owner's shirt.
From the owner's side, here's what a 1099 usually means you pay for yourself: - Both halves of payroll taxes - Your own insurance, and no workers' comp if you get hurt - Van, fuel, tools, phone - No overtime Subtract all of that from the higher rate before you compare. It's often less money, not more.
A 1099 is paper, but if the relationship is really employment, it can be the wrong paper. That's a different problem than cash, not necessarily a better one. Same answer for both of you: the state labor department or an accountant, not a forum.
yeah the gas alone is like $80 a week on that route. didnt even think about the tax part