Paying Taxes

[Displaced_Yankee]

Oh…good catch. I was not clear and I will edit my post.

The W9 is the minimum requirement that I tell my clients. I DO see the mucking/feeding positions as W2 employees where you dictate when and how duties must be done (as well as dictate the wage). I get push back (from clients) about the amount of turnover they have at these positions as well as the request of workers to be paid under the table. I do my best to inform and advise. I think this best fits the situation the OP asks about.

Farriers, vets, trainers, saddle fitters all fall under the “independent contractor” classification. They set their working times (appointments) and prices.

[S1969]

Thanks, that makes sense.

I work on the other side of the desk in business operations – would most boarding barns issue 1099s to vets? I have to submit W9s for my vendors to our central office, but I’ve never thought about whether they issue 1099s to them. Maybe they do? I know that they do for our Independent Contractors, but I would have imagined a vet is a vendor. But possibly they get some other form of tax notification. I’m curious now.

My biggest issue with barns not classifying stall workers as employees is that they must not be covered by workers compensation. And “in theory” a stall mucker is carrying a plastic fork…and not highly dangerous - but we know in reality, they are often cleaning in the stall with horses, and hauling heavy things around, driving machinery, turning piles of manure, etc.

When they get hurt on a job, as an IC they have no insurance and no workers comp. It’s not a surprise the job turns over a lot - it’s a shitty (literally) job, and is actually kind of dangerous. And, if they were smart enough to ask (which most are not) - they will not be covered in the event of an accident. Cash talks, at least.

[Displaced_Yankee]

@S1969

I work on the other side of the desk in business operations – would most boarding barns issue 1099s to vets? I have to submit W9s for my vendors to our central office, but I’ve never thought about whether they issue 1099s to them. Maybe they do? I know that they do for our Independent Contractors, but I would have imagined a vet is a vendor. But possibly they get some other form of tax notification. I’m curious now.

Good question! When a contractor fills out a W9, they (should) check a box for the ‘type of entity’. I don’t have it in front of me but the general options are: individual, sole proprietor, LLC taxed as a corporation, corporation (S corp or C corp) and partnership. If someone selects individual, sole proprietor or partnership, then they should be sent a 1099, as these entities are (generally) subject to self employment tax. S corps, C corps and LLC’s taxed as a corporation do not need a 1099.

All of the vets that I know or have seen W9’s from are S corps or LLC’s taxed as a corporation. The biggest benefit to vets is the separation of business and personal liability. I’ve never known a vet to report earnings directly under their SSN and potentially open themselves up for liability.

@S1969

My biggest issue with barns not classifying stall workers as employees is that they must not be covered by workers compensation

I hear you, and I agree. It is not easy work and they pay is not always great. Plus the cost of workers comp policies working around animals and machinery…