I will be hiring an employee for the first time.. Not sure about the IRS side of it. I thought about paying her under the table but I know that's not the smartest way to go about it. She would be considered an indpendent contractor as she won't be working w/ me full-time and will not be making more than $600 per project. Does anyone know which forms I need to give her? Which forms I need to fill out and send to the IRS?
-
Re: Have you ever employed anyone?
Mon, October 10, 2005 - 7:25 AMIf she is an independent contractor- it is best to make her truly independent. Have her get a business license from the municipality where she works/resides. Once she has that, than she invoices you, and you pay the invoice. At the end of the year, consult with your account about submitting the 1099 forms.
The federal government is beginning to crack down on independent contractors, since many really are employees, and it's a mechanism to avoid social security and benefits.
If you are beginning to hire employees, I can't rave enough about payroll services such as ADP. They will walk you through the process of getting set up- help you get all the things you need (like giving you the phone number to call to get an EIN- employee ID number) as well as any state required registrations as well.
Good Luck!
Ali
ali@specialtyretailgroup.com
