1099 questions

Forum|Forum|1 year ago
January 18, 2025
2 replies
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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?

Not A Product Question

xmasbaby0

Employee

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.**

xmasbaby0

Employee

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

AmeliesUncle

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.