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New Member
posted Jan 18, 2025 3:03:28 PM

1099 questions

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? 

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3 Replies
Level 15
Jan 18, 2025 3:10:37 PM

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

 

Level 15
Jan 18, 2025 3:16:53 PM
Level 15
Jan 18, 2025 4:26:10 PM

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.