As a follow-up, I just want to make sure you are comfortable with the position that the paralegal is in fact an independent contractor and not an employee.
This is a facts and circumstances area. Some items to look at:
- take a look at Rev Rul 87-41; old but still used
- the key and main focus is do you have the right to direct and control
- you can also look at Pub 15-A
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
