do you have to take out taxes
or can you just say you deal with the taxes?
just woundering how this works ?
2007-10-20 11:04:23 · 8 answers · asked by cher 5 in Business & Finance ➔ Taxes ➔ United States
Yes if you hire someone you need to make sure you have all the proper documentation and all of the proper taxes are paid. There are two other options.
1) W9 form. if someone provides you with this you no taxes are necessary.
2) 1099. you may pay some employees via a 1099. but it should be for services that your company would not normally do. I have tried this several times, and been shut down by our state.
2007-10-20 14:48:05 · answer #1 · answered by mstrobert 5 · 1⤊ 0⤋
If the person takes direction from you they are considered to be an employee. If the person does what you need them to do but you don't have to always give them direction they are considered to be an independent contractor.
If you hire an employee you must withhold taxes and pay employer taxes and issue them a W2 at the end of the year. If you hire a contractor they are issued 1099s and they pay their own taxes.
I am an Accountant, I can talk to you in more detail about your options.
2007-10-20 20:16:54 · answer #2 · answered by Nicole E 1 · 1⤊ 0⤋
If you hire an employee, employment taxes is part of the deal. You cannot just agree to do things differently for the convenience of one party or the other.
2007-10-20 18:46:57 · answer #3 · answered by Anonymous · 2⤊ 0⤋
You have to take out the taxes unless their job is that of an independent contractor. You don't just get to decide - it depends on what they are doing for you. For example, if you hire someone to build a garage for you or replace your roof, you don't have to take out taxes, they do. But if you hire someone as a secretary, or to babysit regularly for your kids in your home, then you do have to.
2007-10-20 21:10:26 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
If they are your employee, you are required to take out taxes and to pay some taxes yourself as well (and you give them a W-2). If they are an independent contractor and not an employee, then they do all the taxes (and you give them a 1099).
2007-10-20 19:47:11 · answer #5 · answered by StephenWeinstein 7 · 1⤊ 0⤋
It depends. If the work is done at your home on your schedule (ie Nanny, Housekeeper,etc.) , then YES, you have an employee with all the responsibilities that come with it. You must withhold taxes from the employee's pay and pay other taxes like social security, medicare and unemployment.
2007-10-20 18:29:42 · answer #6 · answered by Wayne Z 7 · 1⤊ 0⤋
I am pretty sure you have to take out taxes because then they will have to file their taxes and such for right offs or something/. I know i was getting paid cash.. not getting taxes taking out of me, and it was illegal.. so i am pretty sure that you have to take out taxes.
2007-10-20 18:12:07 · answer #7 · answered by Angelkins 3 · 1⤊ 0⤋
They take taxes right out of your paycheck. There are few exceptions such as subcontractors, or per diem work force agencies such as labor finders.
2007-10-20 18:47:33 · answer #8 · answered by Cysteine 6 · 2⤊ 0⤋