An individual who work for you on call but is not a contractor nor is considered an employee how should he be?

Question

Compensated.

Answer 1

With wages or trade.

If it is under $600 you do not need fill out a 1099 misc and 1096

If it is over $600 you should should report the non-employees income on a 1099misc at the end of a year. He will be responsible for self-employment.

maybe this will help
taxeshttp://www.irs.gov/efile/article/0,,id=98114,00.html.

Answer 2

They are an employee or a contractor. The response that said vendor misunderstands. A vendor is a contractor. So is a consultant. The IRS has specific rules for determining if someone is considered an employee or a contractor. You rarely has a choice.

Answer 3

You can pay with cash or a check. If he is not an independent contractor nor an employee then he must be a vendor (like your plumber) who does not really work for you - just does work for you. There is a difference.

Answer 4

Ask this person how he/she would like to be compensated. Some may want cash to avoid taxes. Mostly they won't care as long as they get paid. You may also have preferences. It may be tax deductable for you in which case you might pay by check so that you have a record. You may then be required to provide this person with a 1099. Weigh the amount that is being paid with the benefits for you. If little or no benefits to you, then do it the way the individual prefers. Else, take the method that gives you most benefits.

Answer 5

An independent contractor.