Do auto repair shops get a 1099?

But a 1099 is required for an auto repair shop, even if the value of the services is relatively small. When you pay your workers as 1099 contractors instead of as W2 employees, you also inform the IRS of this fact. They know that auto shops are one of many types of businesses that abuse the 1099 independent contractor classification. And all it takes is an audit to detect it.

Then they tell their friends in your state's revenue department and you have a few sleepless nights ahead of you. For example, you buy auto parts from a local dealer and one of your employees repairs the vehicles. For example, the car mechanic who repairs the company's truck, the electrician who came to add outlets in his office, etc.

Kimberly Philabaum
Kimberly Philabaum

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