You have two alternatives to pay him/her.
You can issue a W-2 paycheck.
- You can get software to do this, but I suggest a parole company.
- Taxes and quarterly statements are required.
You can issue him a 1099-NEC.
- He will have to pay his own taxes including self employment taxes.
- The self-employment tax rate is 15.3%. That rate is the sum of 12.4% for Social Security and 2.9% for Medicare.
Either of these can be deducted on your business tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
