skyecko
Apr 22, 2013, 07:02 AM
I am starting a business where I process payments on behalf of independent contractors.
1. Customer request work to be done. Gives me a credit card to cover cost.
2. I call an independent company to perform the work.
3. The company completes the work.
4. I process the payment for the work performed less a $4.95 processing fee. The remainder of payment goes to the company.
Question: What would be their relationship to me in this scenario? Would I be required to send them a 1099 form each year? Is there anything on my end that I need to do or is the relationship separate?
1. Customer request work to be done. Gives me a credit card to cover cost.
2. I call an independent company to perform the work.
3. The company completes the work.
4. I process the payment for the work performed less a $4.95 processing fee. The remainder of payment goes to the company.
Question: What would be their relationship to me in this scenario? Would I be required to send them a 1099 form each year? Is there anything on my end that I need to do or is the relationship separate?