Archived posting to the Leica Users Group, 2006/07/17

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Subject: [Leica] RE: LUG Digest, Vol 32, Issue 294
From: snasta at microassist.net (Sanjay Nasta)
Date: Mon Jul 17 16:04:53 2006

Kyle,

If you're going to hire an assistant you need to get them to fill out a
Form W9 (basically their tax id).  The hard question becomes is this
assistant a contractor or an employee.  If they're an employee then you
get the fun job of witholding taxes and metching them.  The IRS has a
publication at http://www.irs.gov/pub/irs-pdf/p1779.pdf that discusses
this.  If you're going to pay them less than $600/year it's fairly easy
to make them a contractor and just issue a Form 1099 at the end of the
year.  Brians advice of having them sign a simple contract that says
that they are contractors not employees is a good one (if they pass the
Independent Contractor test).  Our accountant has told us that otherwise
at the end of the year the worker can come back and claim they were an
employee and the State expects you to now pay their taxes.  You could
avoid the whole horrendous mess and just go through a temp agency.  Yes
the temp agency makes money but....it's a whole lot less paperwork.
Note, I'm not an accountant just have to live with these rules for a
small business.  

On a photography note my pics are at www.tejasphotos.com  

------------------------------------
MicroAssist, Inc.
Training & Application Development
www.microassist.net
3420 Executive Center Drive
Suite G100
Austin, TX  78731
tel: 512-794-8440
------------------------------------

MicroAssist, Inc.
3420 Executive Center Drive, Suite G100 Austin, TX 78731 
http://www.microassist.net
Phone: (512) 794-8440
Fax: (512) 794-8742