09/03/2024
Bringing a 1099 contractor on board is a great way to add expertise and flexibility to your business.
But, it’s important to handle things the right way to stay compliant and avoid headaches down the road.
Here are a few key things to keep in mind:
1. Unlike employees, contractors handle their own taxes. Ensure you’re not withholding taxes, but do stay on top of your own tax obligations related to hiring contractors.
2. Make sure you accurately track all payments to your contractor for tax reporting purposes. You’ll need to issue a Form 1099-NEC by January 31 next year.
3. Make sure your contractor is correctly classified as a contractor and not an employee. Misclassification can lead to serious legal and tax issues.
Have questions? Drop them in the comments below – we’re here to help!
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