1099-NEC for a 19 year old child (from a Single Member LLC)

You can either issue a 1099-NEC or a W-2, depending on his status. If he meets the criteria of an employee, he must get a W-2.

Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

1.       Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

2.       Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

3.       Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?