topic 1099 questions in Deductions & credits

1099 questions

daycare_mama23 — Sat, 18 Jan 2025 23:03:28 GMT

I own and operate a family childcare home as an LLC. When I hire help, I plan to pay them cash. Can I give them a 1099 form?

Re: 1099 questions

xmasbaby0 — Sat, 18 Jan 2025 23:10:37 GMT

If you are treating them as independent contractors you must issue a 1099NEC to anyone you paid at least $600 to. If you are treating them as employees----and you had better understand the difference---you will need to withhold Social Security, Medicare and federal/state tax and issue W-2's to them.

https://www.irs.gov/newsroom/worker-classification-101-employee-or-independent-contractor

Re: 1099 questions

xmasbaby0 — Sat, 18 Jan 2025 23:16:53 GMT

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined

https://www.irs.gov/businesses/small-businesses-self-employed/employee-common-law-employee

Re: 1099 questions

AmeliesUncle — Sun, 19 Jan 2025 00:26:10 GMT

In almost all situations, a person working for your home daycare is an employee, not an independent contractor.

If they are an employee, I highly recommend consulting a tax professional to discusses employer forms, federal unemployment, state unemployment, worker's compensation and more.