[rose of 2]

this is my fifth year being self employed I would like to hire help. I'm not sure about all the laws on insurance and if it would be better to 1099 or pay quarterly fees to government ? What are lea gal options in this matter?

[Rae]

A bond only cover you if you filed it under a sole proprietorship, if you filled it under a corporation or partnership it will cover your employees, but only if you have disclosed them to the bond company. Remember that being bonded and having liability insurance are two different things.

A bond only helps you get your license and permits with the state or local governments, but it's not an actual insurance policy. If you want your employees to be covered you should look into purchasing a general liability policy which are not that expensive.

[FRAGINAL-NOYPI AKO]

You as a sole Proprietor will be covered for a dishonest act ( theft) only under your name. The help you hire whether "independent contractors" or employees are not covered on your bond.

Many contracts provide you to have either a Bond or liability coverage.

My Janitor clients have both...because they provide different aspects of coverage.

You can hire "subs' as Independents to work for you and 1099 them. But it is advisable to have a "sub-contract agreement with them for that specific job. This is because they can work other jobs and are technically not an employee. They basically are their own business. I would contact a local Independent agent on this. The cost could be any where from $550 to $1,000 depending on sales for liability. The bond for $5,000 limit is usually only $100 per year .

Remember that if you contract independents to work for you ..they should also show evidence that they have liability insurance as well. Also naming you as an additional insured. Their insurance would be primary.

[Janvi D]

Sure you can! But that doesn't mean they aren't employees! If you tell them what time they have to be there, and what they have to do, they're employees. You're responsible for their injuries (workers comp) whether or not you 1099 them.

Calling them "subcontractors" and not withholding taxes does NOT protect you. It does NOT relieve you of any liability, either to them, or to your employers (clients).

However, usually a bond only covers employees. So if you DO 1099 them, they WON'T be covered by your bond.

Be sure to check out this link, about subcontractors vs. employees. http://www.twc.state.tx.us/news/efte/appx_e_twc_ic_test.html