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Level 2

Question

Payment for handyman

Forum|Forum|3 years ago
December 28, 2022
2 replies
7 views

As a small self employed business person, am I understanding that if it’s under $600, I can pay a handyman $600 without giving him a 1099? What are the ramifications for him if I do not give him a 1099?

Level 15

If this is someone who has their own business and you only use them once and you get a reciept from them then a 1099 is not really needed.

Badgerland13 Author

Level 2

They do not have their own business

Level 15

He still has to report all his income even if he doesn't get a 1099NEC from anyone. It would be self employment income to him and fill out schedule C for it. He will pay self employment tax on a profit of $400 or more.

Badgerland13 Author

Level 2

He is not employed, so can I pay him $400 without him having to report it and allow me to report it as an expense

Badgerland13 Author

Level 2

Can I pay him in the form of a Menards, gift card and mark it as a business expense/gift?