1099 Or Employee?

1099 or employee that is always the question the small business owners faces when hiring. You can 1099 people you hire.  If you aren't doing salaries then you may want to treat them like1099 independent contractors and compensate that way but keep in mind that there are specific tests involved for this that the IRS will hold you to in an audit and THEY CAN BACK TAX YOU.  You must determine if they can be an independent Contractor or an Employee.
In determining whether the person providing service is an employee or an independent contractor, depends on the degree of control and independence of that person must be considered.
Facts that provide evidence of the degree of control and independence fall into three categories:
•    Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
•    Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
•    Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Before you make the decision see the official IRS guidelines at this link

www.irs.gov/businesses/small/article/0,,id=99921,00.html