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How do I pay for occasional labor?
I'm starting a business and I have a friend that will be helping me out. She has no ownership of the business and will be working at her leisure (essentially) but not often enough, I feel, for me to go the independent contractor route. That would probably be a hardship for her as well to have to report self-employment taxes. How do I pay her properly and indicate that expense properly?
1 Answer
- Anonymous10 years agoFavorite Answer
You call the IRS and ask how to go about filing 940 and 941, issuing W-2, paying FUTA and worker's comp. Get blank I-9 and W-4s.
I've had W-2s for 1 day of work before.