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Should I Add an contractor or An employee

 
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4 Replies

Should I Add an contractor or An employee

No one can see your tax return or your screen.   Are you an employer who paid a W-2 employee to work for you?   Or did you pay an independent contractor to do some work for a business you own?   Please provide some details.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
PMinBMd
New Member

Should I Add an contractor or An employee

Yes, I am an employer who paid an employee. The employee is myself. Where do I add myself as an employee/owner?

Should I Add an contractor or An employee


@PMinBMd wrote:

Yes, I am an employer who paid an employee. The employee is myself. Where do I add myself as an employee/owner?


If you are a the sole proprietor or independent contractor and you have Not incorporated your business to an S Corp or C Corp or Partnership, then the IRS regards the business as a disregarded entity.  You enter your income and expenses on Schedule C.  Your income is the net income.  You do NOT issue yourself a W-2.

BillM223
Expert Alumni

Should I Add an contractor or An employee

If you are a sole proprietor (like it sounds like you are), you can have employees, but you can't be an employee of yourself. So the answer is "nowhere".

 

And why would you want to be an employee of yourself? The purpose of Schedule C and Schedule SE is to calculate (among other things) your self-employment taxes (i.e., Social Security and Medicare) just as if you were an employee. So do Schedule C (sole proprietorship) and declare victory (Schedule SE will be done automatically by TurboTax).

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