| 09:53am Jan 8, 2002 PST (#1 of 6)
I would love to hear feedback on how everyone classifies interns as far as taxes are concerned. Most of our interns are brought in for 3 months only. At times, we have given them a stipend for the 3 months and then 1099 them at the end of the year. Other times we put them on the payroll and treat them as an employee. Thank you.
Lisa Waslis
McRae Communications
09:54am Jan 8, 2002 PST (#2 of 6)
We handle interns differently, depending upon their work schedule and class-credit requirements.
1. If they work the summer full-time, we put them on the payroll and pay them an hourly wage.
2. If they work during the school year and only part-time, sometimes they are not paid but receive class credit; other times they are paid a stipend and we send them a 1099.
Jill Sittenauer, V.P.
Jones Seel Huyett Inc.
09:54am Jan 8, 2002 PST (#3 of 6)
We put them on payroll. The small amount we have to pay in FICA, medicare, unemployment and worker's comp. is worth it to avoid any potential problems down the road. It helps the intern to have the proper payroll taxes taken out as well; otherwise they may have trouble paying the taxes when they file their return.
Mike Bratton
Financial Manager
Brokaw Inc.
09:54am Jan 8, 2002 PST (#4 of 6)
When we have interns - we 1099 them at the end of the year.
Bonnie Gray
Clarke Advertising
09:55am Jan 8, 2002 PST (#5 of 6)
Definitely employee.
Roxanne Cowan
Rutherford Bolen Group Integrated Marketing
09:55am Jan 8, 2002 PST (#6 of 6)
The 1099 rules in California are pretty strict. For example the employee has to be able to prove that they also work for other clients. Also, you have to be able to show that you are flexible as to their work schedule and where the work is completed, ie., at your studio or their home office. We don't use interns, but to us it would probably not be worth the risk. I would go ahead and put them on payroll.
Shannon Ellis
Business Manager
Tackett Barbaria Design Group
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