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I am trying to expand my cleaning business & begin hiring…

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I am trying to...

I am trying to expand my cleaning business & begin hiring employees but i don't know what step to take first. How do i set it up? Do i have my employee as an independent contractor. I've been paying her cash because i do not know how to handle taxes. I want to make sure my business is run legally. can you help?

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

I have been in business since 2014. I got an extension on my taxes last yr but was in a horrible accident & now i am trying to prepare my taxes for 2016 & 2017

Submitted: 3 months ago.Category: Tax
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3/30/2018
Tax Professional: Barbara, Enrolled Agent replied 3 months ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,361
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You will need to set up payroll for any employees so taxes are withheld, whether you do it yourself or you hire a company to do it for you.

The first step is to obtain a W-9 from each employee as soon as possible.

https://www.irs.gov/pub/irs-pdf/fw9.pdf

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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Customer reply replied 3 months ago
Can’t I hire them as independent contractors? And use a 1099
Tax Professional: Barbara, Enrolled Agent replied 3 months ago

The IRS has very strict rules about how to classify as independent contractors vs. employees.

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Tax Professional: Barbara, Enrolled Agent replied 3 months ago
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Tax Professional: Barbara, Enrolled Agent replied 3 months ago

Even if they are considered independent contractors and you issue 1099s, you will still need a completed W-9 from each person.

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Customer reply replied 3 months ago
then what do i do?
Customer reply replied 3 months ago
having someone sign their name at the bottom of a form is easy. What do i have to do?
Tax Professional: Barbara, Enrolled Agent replied 3 months ago

The W-9 is for your records so you can issue the 1099 or W-2, as the case may be, to report what you paid them.

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