Used Car Dealership ... Mechanic W2 or 1099

[Denver]

so I have a very small car dealership run by myself and my wife

we have a mechanic who fixes an the cars so we can sell them.
Basically he has no set schedule, he uses his own tools, and we don't tell him how to fix the cars. It's kinda like... every car we buy... do your thing and make sure it is retail ready.


Is this guy w2 or 1099

thanks

 

[Snorbenz]

Is he on your payroll and are you deducting tax from him at source?

If yes, you would have previously issued him with form W2. If no, then he's an independent contractor and would be 1099.

 

[accountingguru]

Does he work at the same location as you? Definitely check out the IRS's website. They have a nice comparison on employee vs independent contractor.