Thursday, October 4, 2012

Paying Independent Contractors

ABA Tax Accounting | Small Business Accounting | St. Paul, MN Accounting Firm

What Business Owners Need to Know About Taxes
Small Business Accounting If you pay independent contractors, you may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.
·         You made the payment to someone who is not your employee;
·         You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
·         You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
·         You made payments to the payee of at least $600 during the year.
Considering a Tax Professional? For no obligation free consultation contact us today!
Amare Berhie, Senior Tax Accountant
612-282-3200
866-936-0430 Toll Free

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