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Discussion Starter · #1 ·
What forms are needed for tax purposes. We are about to hire a programmer to get out site up and running. I was just wondering what paperwork we will have to have him fill out?

I looked www.irs.gov and think I need a 1099 but im not sure.

Any help would be appreciated..

Thanks
 

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I would talk to an accountant about this. It may well be that all you need is a 1099, but there may be more to it.

What you want to define is, if this is really a contract worker, or is there some component of the work that makes him/her an employee?

Are they working at your site or at their office? Does the contract worker have a business license? Etc.

One good source for this type of advice is your local SCORE (Service Corps of Retired Executives) office. They may be able to answer these questions for you.
 

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Discussion Starter · #3 ·
Thank you for the reply. We are going to talk to an accountant, to make sure we get it right.

Thanks
 

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I would talk to an accountant about this. It may well be that all you need is a 1099, but there may be more to it.

What you want to define is, if this is really a contract worker, or is there some component of the work that makes him/her an employee?

Are they working at your site or at their office? Does the contract worker have a business license? Etc.

One good source for this type of advice is your local SCORE (Service Corps of Retired Executives) office. They may be able to answer these questions for you.
Great answer. I was going to say the exact same thing, so of course I think your advice was perfect. Heh.

R.
 

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Generally, any individual or company that you make any type of payment to you should have a W-9 form signed by them w/ either their social security or EIN number. If you don't have this form signed by the receiver, then according to IRS regulations, you would them be required to withhold & remit a portion of their payment to the IRS. Look up W-9 on the IRS site, it has all the info, and you can download the form, send it to your programmer, and have him/her complete & sign it & return back to you. Even if you're paying invoices to suppliers, you still should have a W-9 from each supplier on file just to protect yourself.
A Form 1099 is generally used to report wages you paid to workers that you employ on a very part time basis, or work outside your business location, and are self employed by IRS regulations.
A casual worker, or anyone that you paid $600 or less in any one year, or any OUTSIDE sales person or sales rep that is commission based would be two examples of 1099 form recipients. However, be very careful here, as the IRS has very strict regulations that define what they consider as self employed sales people. Just because a person tells you it's OK to give them a 1099, that does not relieve you of the potential responsibility to properly withhold & remit a portion of their wages.
 
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