Comments on: I’m a web designer looking to hire an independent developer services (hourly). Tax-wise do I just 1099 him or?

By: Josh

Josh — Thu, 11 Mar 2010 05:30:59 +0000

I think the best thing to do would be to consider them an independent contractor. Then you would want to give them a 1099-MISC for any work they do for your company or business. However, I think you only have to give them a 1099-MISC if they earn more than $600 for the year from working for you.

Hope this helps,

-Josh, CPA
References :
http://www.irs.gov/pub/irs-pdf/f1099msc.pdf

By: Jss

Jss — Thu, 11 Mar 2010 04:56:59 +0000

See if you treat the developer as an employee or as an independent contractor. An independent contractor gets 1099-misc and you do not need to withhold taxes.

An employee gets W2 and an independent contractor gets 1099-misc. On W2 the employer must withhold Social Security and Medicare taxes. //np On 1099-misc, you will pay 15.3% SE tax instead of 7.65% withheld from W2 income. Thus you pay about 7.5% more. The advantage of getting 1099-misc is that you can directly deduct your business related expenses on schedule C or C-EZ. On W2, you can take business related expenses only as itemized deduction
References :
http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html

By: v b

v b — Thu, 11 Mar 2010 04:26:59 +0000

If the work is done in the US, they person you pay is either an employee or a contractor. For both, you verify if they can work. Give the employee a W-4; W-9 to the contractor. Do NOT pay unless form is returned showing SSN. At end of year, give W-2 or 1099-misc.
References :