Okay so I did some looking around and some experimenting. (Thanks to my Desiree, Thad and Melisse for being my 'test' subjects.) So, this is how it looks to work.
Let's say Alice is a part of my team. I've looked at her resume, and she really rocks with customer service type jobs. She's also highly rockin' at things like phone service, etc. So I search oDesk and find a job that I think would be good for Alice. I then apply on Alice's behalf and give the rate of pay I want her to get. Alice does the work and is happy happy joy joy. YAY. When she completes that work, the "employer" (I hate that term because it's incorrect) then pays for the work.
The pay comes to the agency's financial account. (My account.) I then pay Alice out one of two ways. I can do whatever it is that I do to use oDesk to pay Alice, but it will cost another 10% in fees to oDesk. Or, I can pay Alice through Paypal. If I pay Alice through Paypal, I have to get the 1099 together at the end of the year and mail it out to her. If I pay Alice through oDesk, they keep track of all of her pay and send her the 1099 at the end of the year.
At least, that's how I understand it. And if I have to do the 1099 thing, I think I have to have those on the agency fill out the w9s for it.
Now I'm not completely positive so am sending oDesk an email to double check this. I really like the idea of paying through oDesk just because they keep track of income information to send the 1099's to you at the end of the year. That means less risk of me messing something up and going to jail if I don't do it right.
Scary but I think we can do it.
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