Thanks for replying. I absolutely agree with you and all the other individuals who responded to my question. Even though I only prepare her quarterly payroll tax returns, I take my role seriously and professionally.
The barter agreement was the term I was looking for to describe the situation. First time being in a situation where a barter agreement is being used. All my other clients have employees who are W2 employees with only wages being paid to them.
I have to constantly explain to them, you can't just decide to categorize if this is individual is an employee or subcontractor because so and so does it, or it feel right.
I have to explain to them, to determine employee vs subcontractor comes down to certain factors and I explain it to them and even provide them the proper IRS publication.
Anyways, I received the answers I was looking for.
Wish me luck to get my client to cooperate.
Thanks again for your input and thank you to everyone for your input as well.
