15
Jul
Jul
I will be hiring some instructors for my school, is there a way to pay them on a contract bases and have them do their own taxes? My sister-in-law is a dance instructor and has to pay her own taxes from her wages she gets from the studio she works with. Any advice would be appriciated. I really don't have the extra equity to hire a CPA yet. Thanks!
Answer:
Contract them as 1099 employees. Go to www.irs.gov for the form and instructions. You pay them 100% wages. At end of year you report their income on a 1099 form to them and IRS. They pay tax themselves due based on their individual returns. You don't need a CPA, just a small business accountant. If you use Quickbooks, look in phone book or online for a local q-books accountant. That way you both have same software and it makes it easier for them to help you. At least get an initial consultantion so you do things properly. To not do properly can lead to tax penalties far greater than cost of consultation. Book Mark it-> del.icio.us | Reddit | Slashdot | Digg | Facebook | Technorati | Google | StumbleUpon | Window Live | Tailrank | Furl | Netscape | Yahoo | BlinkList
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