I have started a small painting business, i had several workers, about 4 of them only worked 1 or 2 weeks, making under $600. I wrote out checks to them from my painting account, I have 1 employee that made $3,000. what form do I need to send him so I can claim it as a deduction, no taxes were taken from his checks.

Tom

ScottGem

If you are not witholding taxes then you can get in trouble with the IRS. Either that or you are treating these workers as independent contractors, not employees. In which case you report what you pay them using a 1099.

LORRAINEB

I paid employee with checks totalling $3,000. do I have to send them a 1099?

ScottGem

Again, if you didn't not withhold taxes I would NOT refer to them as an employee. Because not withholding from an employee's pay will get you in trouble. If you pay any person for services amounting to more than $100, you are required to send them a 1099

Fr_Chuck

First if you were not withholding taxes, paying unemployment taxes, paying your share of the social security ( they pay 1/2 you pay 1/2) on the withholdings and they were actually employees, you broke the law.

If they were not employees but contract workers, they you pay them without withholding anything and give them a 1099.

So yes at this point you give them a 1099 and hope they don't report you or complain about not doing thier withholdings property.

If you have employees, and they only work one day, you withhold taxes.

If you don't know how to do it, learn or arrange to have them paid though an employment agency. Our company has 100's of employees but all of our employees are paid though a employee agency.