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Retirement tax questions
She can't. Unless she pays him as an employee and gives him a W2. The contractor has to send in his own SS & Medicare tax by paying quarterly estimates. He will file his 1099NEC on schedule C and pay the SE tax to cover SS & Medicare. He should pay it since it might be less than if she paid it for him. He only pays it on his Net Profit not the gross she pays.
‎January 15, 2024
11:04 AM