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Questions on small business payroll and the 1099..
Posted on 2/1/16 at 11:27 am
Posted on 2/1/16 at 11:27 am
Can the LLC director 1099 themselves vs using a payroll service?
Basically calling every employee at subcontractor and using the 1099 for taxation purposes?
It's an LLC that will file as an S-Corp for tax purposes.
Basically, it's a company that works on a project by project basis on the side. We only take pay when we have projects in house, which will be intermittent.
Basically calling every employee at subcontractor and using the 1099 for taxation purposes?
It's an LLC that will file as an S-Corp for tax purposes.
Basically, it's a company that works on a project by project basis on the side. We only take pay when we have projects in house, which will be intermittent.
This post was edited on 2/1/16 at 11:39 am
2
Posted on 2/1/16 at 1:18 pm to LSUAlum2001
You would have a pretty tough time convincing a federal and state auditor that a shareholder of an S Corporation is not an employee, but an independent contractor.
As far as everyone else, you are back to the multi-factor test between employee and independent contractor status.
If you are assigning work, and controlling any part of their work process, providing them resources, etc, they are probably employees. If it is a project by project basis, they are probably part-time employees.
All of the major payroll services can handle 1099 payments and tax tracking.
As far as everyone else, you are back to the multi-factor test between employee and independent contractor status.
If you are assigning work, and controlling any part of their work process, providing them resources, etc, they are probably employees. If it is a project by project basis, they are probably part-time employees.
All of the major payroll services can handle 1099 payments and tax tracking.
Posted on 2/1/16 at 1:41 pm to LSUFanHouston
Everyone working on the projects are subcontractors working on a project by project basis, so I'm good just 1099ing them.
I'll also be paying myself on a project by project basis as well, but I'll have to pay taxes on it as I pay myself.
Thanks.
I'll also be paying myself on a project by project basis as well, but I'll have to pay taxes on it as I pay myself.
Thanks.
Posted on 2/1/16 at 1:48 pm to LSUAlum2001
You're taking a pretty big risk here potentially.
Posted on 2/1/16 at 2:09 pm to VABuckeye
Tax purpose risk or liability risk?
Posted on 2/1/16 at 6:40 pm to LSUAlum2001
quote:
It's an LLC that will file as an S-Corp for tax purposes.
We're an s-corp and I thought the benefit to that was receiving some w-2 wages. For the partners anyway.
That way you can limit your personal FICA taxes. i.e. take the remaining profits as a distribution. Your salary has to be reasonable within your field though.
Posted on 2/2/16 at 5:38 pm to TigerDeBaiter
This is exactly the way I just set up an LLC with my partner to be taxed as an s Corp. Pay ourselves a reasonable salary and then distribute the balance that we don't keep in the business for operating expenses.
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