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I'm using Self Employed and it's asking me who my "payer" is. I don't have a payer. I own a business with employees. Should I put my business as my "payer"?

Should I be using "self employed" or is there an option for a sole proprietor with employees?  I'm confused.  
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2 Replies

I'm using Self Employed and it's asking me who my "payer" is. I don't have a payer. I own a business with employees. Should I put my business as my "payer"?

Where are you in the program ?   Are you trying to enter a W-2 form for yourself from your own Sch C business ?

 

In the Sch C income section there are different screens ... you can skip the 1099-NEC section and simply enter the total income from all sources in the next section ...

 

Sch C  income screen.PNG

TomD8
Level 15

I'm using Self Employed and it's asking me who my "payer" is. I don't have a payer. I own a business with employees. Should I put my business as my "payer"?

To add to @Critter-3 's answer:

 

If you are a self-employed sole proprietor, you do not issue a 1099 or W2 to yourself.   You enter your sole proprietor business's income & expenses on Schedule C of your tax return.

If your business hires independent contractors or subcontractors and pays them $600 or more for the year, then you issue a 1099-NEC to them.  You enter those payments on Line 11 of your Schedule C.

If your business has employees, then you issue a W-2 to them and report their wages on Line 26 of your Schedule C.    Note that if you have employees, then you must obtain an EIN for your sole proprietorship.

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-an-ein

 

This IRS reference explains the difference between independent contractors and employees:

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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