![]() Note that if you misclassify an employee you can be held liable for employment taxes for that worker. If you are unsure if you should consider the people working under you as employees or contractors you can complete Form SS-8 and the IRS will advise you on the appropriate classification.For example, you would deduct amounts paid to your independent lawyer or accountant on line 17 of your Schedule C, while amounts paid to an offshore web developer for support on your business website would be deducted on line 11 of your Schedule C. Payments to independent contractors can be deducted on different lines of your Schedule C or your Schedule E depending on the nature of the work your contractor performs. ![]() When you hire a subcontractor, you should request they complete a W-9 so you have all the information you will need to issue them a 1099-MISC at the end of the year should you pay them over $600 for services.Refer to the IRS or your tax advisor for additional guidance and keep in mind that all factors should be considered when determining if the person you hire is an independent contractor or an employee. Note that these are just some of the criteria to consider. ![]()
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