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Employee, subcontractor, payroll, 1099? |
I need to know if a corporation can have an employee on weekly payroll for their base pay, and also send them a 1099 for their commisions... You should get a W-2. A 1099 subcontractor is defined as an individual that is not on payroll directly. 1099 subcontractors, however, are not corporations, but rather are organized as sole proprietorships, LLCs, LLPs or Partnerships. These types of entities are subject to receiving an annual IRS form 1099-Misc for any amounts paid for their services. Yes! a 1099 is for "supplier" work - payroll is for their base pay - they can do both, but might be a red flag for the IRS - why would an individual want to pay both sides of social security tax, because when you get a 1099 you have to do that. |
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