#1. You need to issue the W2 and 1099NECs to the people by Jan 31, 2025. Your payroll system should know that.
#2. How have you been paying yourself. When you file as self employment independent contractor you do not pay yourself or give yourself a W2 or 1099NEC. Sole proprietors cannot take a withdrawal or salary and include it as an expense on their tax return. As a sole proprietor, you are not an employee of the business. You don't pay yourself or enter a salary or withdrawal for yourself. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income. If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.
#3B What do your personal living expenses have to do with this? You don’t report those anywhere. You need to pay them out of your profit or savings etc. If you are filing Schedule C for self employment it is a disregarded entity and it doesn’t matter which account or credit card you pay business expenses or personal expenses out of. It’s all yours in the first place.
