Results Driven

Episode 162: The Hiring Mistake That's Killing Your Business

Tiffany and Josh High Episode 162

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0:00 | 9:01

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Are you expecting employee-level dedication from your sales team while only offering contractor-level commitment? Many real estate investors make the critical mistake of hiring acquisition managers as 1099 contractors to save on taxes, completely unaware of the legal and operational chaos it creates. In this solo episode, Tiffany High breaks down the massive differences between W-2 employees and 1099 contractors, and why your hiring structure dictates whether you build a loyal team or a revolving door of turnover. You will learn the strict IRS rules regarding mandated training, controlling work hours, and enforcing a singular sales process, plus a shocking cautionary tale of what happens when your 1099 contractors fail to pay their taxes. Listen and enjoy the show!

You’ll Learn How To:

  • Structure your acquisitions team correctly to avoid costly IRS audits and legal liabilities
  • Differentiate between the legal rights of W-2 employees versus 1099 independent contractors
  • Build a highly trained sales team without violating federal labor and classification laws
  • Enforce a standardized sales process and mandatory daily training for your team
  • Protect your business from becoming liable for a contractor's unpaid federal taxes

What You’ll Learn in This Episode:

  • (1:09) The dangerous mismatch of wanting employee-level accountability with contractor-level commitment
  • (2:04) Why hiring cheap 1099 contractors actually repels the high-tier talent you want to recruit
  • (2:45) Why mandating daily sales training automatically classifies your team members as W-2 employees
  • (3:25) How failing to train your acquisitions team daily is literally setting your marketing dollars on fire
  • (4:03) The legalities of enforcing a strict acquisitions process and controlling your team's work hours
  • (5:55) Tiffany's nightmare experience of receiving an IRS letter for her contractors' unpaid taxes
  • (7:16) Why you become legally responsible for back taxes if you continue paying a delinquent contractor

Who This Episode is For:

  • Real estate investors and business owners actively hiring or managing an acquisitions team
  • Entrepreneurs unsure whether to classify their new hires as W-2 employees or 1099 contractors
  • Team leaders who want to enforce mandatory training and KPIs without breaking labor laws

Why You Should Listen:

Hiring an acquisitions manager as a 1099 contractor might seem like a smart way to save money, but if you treat them like an employee, you are walking into a massive legal trap. By listening to this episode, you will understand the strict IRS guidelines that separate employees from contractors, allowing you to legally mandate daily training, enforce your sales process, control work hours, and protect your company from devastating tax liabilities.

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