What if I paid my employees as a general contractors. Meaning I gave them a 1099.
Do they still go online 26 or “can” they go online 26 (in lieu of line 11.) They are still my employees and I’m using this to file for my PPP -so please say yes 🙂
No. Line 26 is for employees you gave a W2 and withheld payroll taxes. You did not pay employees. These are Contract Labor, independent contractors, sub contractors, etc. they go on line 11. Why don't you want to use line 11?
How to enter Contract Labor
https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-contract-labor/00/27407
don't claim they are you employees if they aren't. if they are are your employees then you should be giving them w-2's not 1099's, filing payroll tax returns, paying payroll taxes, and maybe other things like workmen's comp insurance if required by state law. that's all you have to do if ever audited by IRS is to say they're you employees, even if not. then the agent will dig into the situation and start asking a lot of questions about their status. if the IRS determines they are, your headaches are just starting and your bank a/c will be diminished.
because I am filing for the PPP loan program and for that purpose along, I think we are able to include 1099 employees - if we want to keep their jobs. I am not sure of this, do you know? my team is still sleeping, I will look on line.
Thank you for taking a moment to reply - this is not in my wheelhouse, fish out of water over here.
I am ok using line 11 - its just a very high amount considering my size of company, around 46k
don't need any flags, I am trying to stay in business. 🙂
DTM
Let raise another question ? What about if it is 1099 NEC or 1099 Misc ?
All contract labor should received 1099 NEC and should file the wages on line 11 versus to Line 26 ??? Before you used the line 26 to reduce income and you send a 1099 Misc . But if an independent contractor send a 1099 Misc to anybody where should he place the wage payment line 26 or 11 from schedule C ?