Business owner with 1099 contract labor
Bussiness owner has no W2 employees, everybody working with him is 1099. Is there anything he can do to offer retirement plan contributions to 1099 folks?
Bussiness owner has no W2 employees, everybody working with him is 1099. Is there anything he can do to offer retirement plan contributions to 1099 folks?
Permalink Submitted by Alan - IRA critic on Thu, 2019-01-24 21:26
First thing he should examine is whether these people are really independent contractors or should be considered as employees receiving a W 2. The latter would allow him to offer a workplace retirement plan of the usual types. Conversely, if they don’t pass the tests for employee status, they are self employed and could adopt their own plans individually, such as a solo K or SEP IRA.
Permalink Submitted by Don Warnke on Thu, 2019-01-24 22:49
assuming they qualify as 1099 labor, could he offer sec. 162 bonus plan to the 1099 employees?
Permalink Submitted by Alan - IRA critic on Thu, 2019-01-24 23:05
I am not conversant with these plans, but a quick search indicates that these plans cover employees, not independent contractors.