Anyone here that is an acoccountant or tax man, can I ask one ?

Sepen

Diamond Member
Oct 9, 1999
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If so, please pm for the ?. I certainly appreciate it.

thanks,

Sam
 

Sepen

Diamond Member
Oct 9, 1999
3,189
0
71
Originally posted by: dquan97
Just post your question here.

Thanks, will try here for a fast and simple answer. Last year my daughter became pregnant and was terminated from her job (that is a diff matter) So, I started paying her $100 a week to answer the phone, do some billing etc. for my in home business. She made $5200 working for me in 06. Can I provide her with a W2 although I didn't take any taxes out or will I have to 1099 her.
Reason being is that the more she makes the more she gets for EIC.

thanks,,,

 

linuxboy

Elite Member
Oct 9, 1999
2,577
6
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She sounds like an employee, so you should be withholding and giving her a W2. You can backfile all your quarterlies and pay the penalty, or you can make the case that she is an independent contractor (if a case can be made) and give her a 1099 for the income. Not really enough info to make a good recommendation.

Oh and W2/W3 and 1099/1096 are due Feb 28.

http://www.irs.gov/businesses/small/article/0,,id=97748,00.html

Cheers ! :)