Legal Question in Employment Law in California
How long can you pay temporary employees outside of payroll?
Our business has high turnover. How long can we claim low skill employees as ''temporary'' and pay them outside of payroll? We want to give them a 1099 at the end of the year, but not deduct taxes from their weekly pay until we decide that they are permanent for us.
Ideally, it will take us approx. 6 months to decide to put them on payroll as a permanent employee.
2 Answers from Attorneys
Re: How long can you pay temporary employees outside of payroll?
It sounds like your company is risking substantial problems with IRS and FTB if they are not properly handling payroll. You should consult an attorney to bring your policies in line with the legal requirements. Contact me if interested in discussing doing so.
Re: How long can you pay temporary employees outside of payroll?
These individuals are employees from the first day you hire them. Proper legal deductions and tax payments are required.
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