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

Answer 1

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?

Answer 2

particular they must be paid costs this is the only honest way. otherwise an MP in Northern eire or Scotland may well be paid plenty under somebody in the South because of the cost of vacationing, staying away. the 2d homestead allowance become a privilege to MP's so as that they might stay and paintings in convenience, specially circumstances having their families connect them. additionally it worked out extra cost-effective than a inn, parking and meal allowance to the tax payer. watching my 2 interior of sight MP's from Nottinghamshire neither have abused the equipment (one labour and one Tory) - the two claimed approximately £15,000 in 2d homes and got here low down on different costs. One is a shadow minister. whether some MP's from all events have abused this suited and now the equipment does prefer amending and if which potential penalising the various for the action similar to you do with infants. for this reason they the two might desire to place up out of pocket costs with receipts - or ought to have a house or flat provided which they use on an identical time as serving the country and hand the keys back whilst they renounce or get voted out. similar to what occurs in the militia.

Answer 3

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.