What's the best way to pay sub - contractors ( 1099s ) ?

Asked over 1 year ago - Madison, WI

Our company recently began sub - contracting IT professionals to clients . I was planning on adding those sub - contractors to our payroll . However , I was given the advice that doing so is a bad idea since , in the event of an audit , it would make them appear as employees . Is that true , IE , should I keep sub - contractors out of our payroll system ? If so , what is the best way to pay them ( electronically ) that minimizes risk of reclassification to W2 ? Thank you .

Attorney answers (1)

  1. Maxwell Charles Livingston

    Pro

    Contributor Level 13

    Answered . Get a w-9 from them, so you can use their SS# on a 1099-Misc, which you will then have to file with the IRS. That is the proper way to do it.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

25,075 answers this week

3,229 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

25,075 answers this week

3,229 attorneys answering