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Originally Posted by BeanTown
No doubt its a disadvantage for a buyer to live in a State where the AH collects tax. Looking at the one person who represents Heritage in Florida makes it where they have to charge tax for everyone in that state in all their auctions across the board! Why wouldnt they just make her 1099 employee and do all their customers a favor. Huggins and Scott have like 20-50 reps throughout the Country. From what I understand employees are 1099 and only make money by the consignments they bring in. So, this way they can service many customers.
Jeff P now works for LOTG. Does this mean tax will be charged to people from Wa? Im sure many AHs have employees that live and work in different States. Question is does this mean they now will start charging tax where they have representation?
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The law says who can be a 1099 and who can't. Typically a worker cannot be both an employee and an independent contractor at the same company. An employer can certainly have some employees and some independent contractors for different roles, and an employee for one company can perform contract work for another company. But the law states the requirements to be a 1099 and my guess is Heritage is just following the law. And yes, it does suck for those that get taxed on the front end of the sale. But there is no doubt Heritage is just doing what they have to with their full time employees.
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