Should a company that uses 1099 conslts pay for the conslt's travel expenses & if they do, what are the risks?

Either pay the expenses, or expect the consultant's fees to cover the expenses. No one works for free. Don't forget housing costs. One way or another, the contracter needs to recover his expenses.

If the company thinks the cost of this expense is prohibitive, then they need to consider if this consultant's services are worth it. If not, they should find someone local.

The risk for paying ANY consultant is the same. Do those services have value equal or greater than the costs?

No risk there. If you're worried about the consultant being reclassified as an employee, quit worrying - paying their expenses won't change anything;

You'll be paying the expenses one way or the other - either pay the expenses directly, or pay them to the consultant whan they bill you for expenses in addition to their fee.

Tags

　　Boston 　　Austin 　　Atlanta 　　Other - Business & Finance 　　Other Taxes 　　United States Taxes 　　United Kingdom Taxes 　　Spain Taxes 　　Singapore Taxes 　　Mexico Taxes 　　Ireland Taxes

Related information

What is the difference between a sales invoice, a tax invoice, & a service & sales invoice?

An invoice or bill is a commercial document issued by a seller to a buyer, indicating the products, quantities and agreed prices for products or services with which the seller has already provided ...

How long will it take a parcel from NZ to clear UK customs?

And this has what to do with taxes?

...

How much tax would I pay as a pharmacist?

If you are a US citizen then you would still be liable for US taxes. If not, then I have no idea what you would pay in taxes.

...

Irs..........?

If you set up the agreement to be automatic withdrawal they would take the money out, otherwise it's up to you to send a check. They shouldn't take your refund check if you're curren...

How does current tax system benefit the rich?

Too late, it's already happened through 6+ years of President George Bush. First and foremost were the tax cuts that were passed that cut the top tax rates down. Also, increases in the estate ...

I am about to win a 42,000 lawsuit, non of this will go in my pocket, am i liable for taxes on this?

Legally it's going in your pocket, it's just coming back out real fast to pay off other debts. It might still be taxable income. Check with your lawyer.

...

How do I reduce the amount of taxes owed after a foreclosure?

A foreclosure on a home may also result in a 1099-C from the mortgage lender if the property is sold for less than the amount of the loan. In this instance, a person loses their home and may also f...

What is the sales tax rate for restaurants in Indianapolis, IN?

6% is sales tax rate for Indiana. I've attached a link to sales tax info for all the states.

...