turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

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? 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies

1099 questions

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

 

**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.**

1099 questions

More:

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

 

**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.**

1099 questions

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.

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question