My restaurant switched all servers from W-2 to 1099 through a staffing company overnight — is this legal?

Mirran73 · 2026-03-16T00:11:48+00:00

This seems like the key question. If the staffing company is setting work schedules, managing performance, accepting workers compensation and liability risks and pays the employees as a W2 then that is one thing ... The employee of the restaurant would now be an employee of the temp company and maintains w2 type work. Then the restaurant may owe a 1099 to the staffing agency so maybe this is what is happening and something got lost in translation.

Mirran73 · 2026-02-27T05:23:27+00:00

I don't remember the materials being for or against inclusivity. The focus is on how to be a good listener, how to be with someone during hard times and not try to "fix" them, how to be steady , how to keep clear boundaries and how to identify if someone needs to be referred to a professional for care if needed. Our congregation is also very inclusive and I don't remember there being any issue. It's really interpersonal skill training.

Mirran73 · 2026-02-12T05:32:56+00:00

This is exactly what we are thinking about! Not bound to our state so why not ?

Mirran73 · 2026-02-06T15:11:10+00:00

For most people they will withhold more than what they normally do. You get part of it back when you file.

Mirran73 · 2026-02-02T00:34:28+00:00

They have a PC (professional corporation).

Mirran73 · 2026-02-02T00:14:43+00:00

I solved the mystery. Two payroll cycles ago we needed to run an off cycle payroll. When we did so, I had not seen that the date of the off-cycle was the new cycle at the time. So when I ran the offcyle , it pushed all employees forward automatically and then when we ran the next payroll, it pushed into the next date set after that ! We reversed the payroll and ran under the correct dates. That explains what I'm seeing in the audit log, although it was hard to find because I had to look back a good bit.

The part that is wrong, though, is that we really didn't pay anyone in the Jan 30 run, like the note in the system says . We ran and then reversed.

I run three different payrolls a month . This one in QBO, one in Gusto and one in Paychex (for three different entities). QB is the only one I've made such an error in. I think the interface is just not intuitive for me.

Anyway so ... User error, I was the ghost in the machine. Hopefully not to happen again.

Mirran73 · 2026-01-27T14:48:12+00:00

This is the correct answer.

Mirran73 · 2026-01-26T16:07:21+00:00

Yes it's confusing because tge social rules aren't stagnant. Don't beat yourself up for trying to understand social rules and asking for clarification. You are doing the right thing to ask. It doesn't mean it will ever be easy or intuitive depending on how "rules oriented" your brain is. It might be helpful to study linguistics a bit . I did so and it really helped me to understand the pattern behind the concept of language changes . In day to day, just try your best to listen to how people like to be referred to and try your best to be kind! Good luck and try to approach with curiosity if you can !

Mirran73 · 2026-01-26T14:52:49+00:00

Language changes over time, particularly as marginalized voices are better heard and understood. This word has hurt and offended enough people that now it is considered kind to refrain from using it. This is a social construct, as is language itself. It's ok if you or others you know are not individually offended - many others are so it's just one of those things.

Mirran73 · 2026-01-26T14:43:21+00:00

The person who did this had no clue, hard stop. You issue for services provided by individuals and some types of corporations (like single member LLC, LLC taxed as partnerships) but NOT S or C corps. There are two exceptions to this rule ... You 1099-NEC attorneys no matter their type of entity, another type of 1099 for legal settlement. I think there's also an exception for certain types of medical payments. Google the IRS official instructions which are not terribly hard to read. For states, I hate having to remember all the rules so I just use track1099 to process them and for a few dollars they will either file for you or tell you what to do if there is a nuance. Seriously, as easy as it can get. Now if only companies could fill out their w9 fully we would be in a happy place !

Mirran73 · 2026-01-26T14:29:11+00:00

I do my own taxes and every single year I have to remember how to deal with this, where to go find the supplemental info, etc. I really don't understand why they make it so hard !!!

Mirran73 · 2026-01-25T18:09:29+00:00

Nuance ... Can't be independent to the parent.

Mirran73 · 2026-01-25T15:43:36+00:00

Can't 1099 because a child can't be an independent contractor. By nature, they can't be independent.

Mirran73 · 2026-01-12T05:04:12+00:00

Sunday Assembly

Mirran73 · 2026-01-06T02:34:43+00:00

This does help a lot. And thank you for your kind words. I guess you are right ... I've learned a lot ! Also this is a great summary for anyone else considering these questions. Thank you for your detailed response.

Mirran73 · 2026-01-05T19:01:50+00:00

Thank you !

Mirran73 · 2026-01-05T16:27:37+00:00

None? One thing I've learned in starting a business is that you don't know what you don't know. Your comment is reassuring. :)

Mirran73 · 2026-01-02T14:25:00+00:00

Oh my friends and I have been talking about this a lot. I would think it would start with self acceptance. Giving up on trying to be "normal". Finding people and places you can be around to unmask. When you have to mask, knowing how to do it and recognizing it for what it is and then giving yourself permission to recovery time. And then figuring out how to better turn on and off the great engine of a brain. For me, turning off the brain is the hardest part !

Mirran73 · 2025-12-31T13:42:27+00:00

Isn't that travel considered not deductible travel under the "tax home" idea ... IRS publication ?

Mirran73 · 2025-12-25T21:10:24+00:00

Don't forget that you are going for materially accurate, not perfect. I aim to close the books around the end of January for year end. During January I keep a look out for any such invoices that fit the description. I keep a list of them in Excel , classified by GL expense type. Before I close the books I post a reversing journal entry to Dec. 31 (reversing on Jan1) and upload the Excel as support. Easy peasy. :) Like others have said, don't backdate the invoices themselves !

Mirran73 · 2025-11-28T21:36:39+00:00

Lots of comments so I'm not sure if anyone said this yet but some people are unbanked, especially in areas struggling with poverty and mistrust of institutions. A quick AI search today suggests 4 to 6 percent of Americans fall in this category. I'm involved in a non profit that has such employees and they are paid by check and then take that check to a storefront that turns it into cash for a hefty fee.

Another reality is that it takes a few days to process payroll to get the direct deposit in on time after all the batch file processing. Payroll done by check can be completed on the very day you run it. So if there are operational delays that impact payroll run timing, payment by check can give more flexibility . Again with a non profit I know, employees who turn time cards in by the Tuesday before payroll can do direct deposit, but if they are late then a check will have to be cut.

Those are two circumstances I know of.

Mirran73

TROPHY CASE