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What is the amount an individual earns to begin paying

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What is the amount...

What is the amount an individual earns to begin paying income tax.

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

If I employ an individual, what is the amount this individual must earn before I begion paying income tax on their salary?

Accountant's Assistant: Is there anything else important you think the Expert should know?

Is it the hours worked or the amount of money earned that determines when you start paying income tax for this individual I have employed?

Submitted: 7 months ago.Category: Tax
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10/2/2017
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 7 months ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,362
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
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When and IF you need to pay payroll tax for an individual is determined by the workers classification.

Worker Classification is important because it determines if an employer must withhold income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. Businesses normally do not have to withhold or pay any taxes on payments to independent contractors.

If you do determine the workers classification is an independent contractor then you would issue a 1099 if you paid the independent contractor $600 or more.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 7 months ago

The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 7 months ago

For help in determining the status of a worker use Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 7 months ago

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