During Holiday season (Dec. 2006) a friend of mine worked for me in my small restaurant. Since the amount is about $2000.00 i would have to file IRS form 1099 misc.. But over the past month i tried to contact him to give me his ss# (he doesn't have tax id) so that i can file 1099 misc. and he would not answer my calls or return my calls. What should i do? what can i do? Am i basically screwed.?
2007-03-03 10:38:56 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Judy is right, classification as an employee (W-2) vs. an independent contractor (1099) is determined by the the employers control over the work. It is NOT a choice. In a restaurant, they were probably an employee, not and independent contractor. In either case, you should have had the appropriate tax documents completed BEFORE they started working. Yes, you are basically screwed.
2007-03-03 11:31:15 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
By the way, it would be pretty unusual for someone working in a restaurant to be legally classified as an independent contractor and not an employee.
2007-03-03 11:03:40 · answer #2 · answered by Judy 7 · 3⤊ 0⤋
you're screwed. you will be penalized for filing an incomplete 1099, i.e. one that is missing the payee's tax i.d. #. let this be a lesson to you to get their tax i.d. # BEFORE they get paid the first check. at my office, payees dont even get put into the a/p system, let alone get a check, unless we have their form W-9.
2007-03-03 10:51:59 · answer #3 · answered by RichManPoorMan 2 · 1⤊ 0⤋