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How can I give someone a 1099?
The company that I work for is hiring a person(s) to do the office cleaning. I will be taking this on, with my boyfriend. They will not cut checks to two separate people, so I will be the one getting the check, which will produce a W-2 at the end of the year. I want to be able to give my boyfriend a 1099 at the end of the year. How do I make this work? Thanks in advance!
1 Answer
- mrreliable3599Lv 79 years agoFavorite Answer
You can give your boyfriend a 1099, but you'll end up paying FICA twice.
You'll have approximately 6% withheld for FICA tax (social security and Medicare), and your employer will pay the other side at approximately 8%.
Then if you pay your boyfriend, and issue the 1099, he'll have to pay both sides, or around 13+% in self-employment tax (the self-employed person's counterpart to employee FICA withholding).
But you're going to pay FICA on the whole amount you're given as an employee, even if you pay it out to someone else. That's because you're paid as an employee and there's no provision to back out wages to be paid to someone else.
You also have to own your own business in order to issue a 1099-MISC for nonemployee compensation. You're an employee, not self-employed.
It's not a correct means of structuring the compensation, and it will cost you money.
If your company is hiring both of you to do the work, they're legally required to issue both of you a W2.