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-   -   How to pay my employee? (https://www.askmehelpdesk.com/showthread.php?t=186584)

  • Feb 21, 2008, 09:29 AM
    ahughes
    How to pay my employee?
    My employee is paid a small hourly scale any where from 6.5-8 dollars an hr. I also pay commissions which is supposed to be the primary way to make money.
    Can I just pay him by check and give him a 1099 at the end of the year?

    If it helps I live In CT
  • Feb 21, 2008, 09:36 AM
    ScottGem
    Not if he's an hourly employee. It does not sound like he's an independent contractor. If he's not then paying him by check and issuing a 1099 wouldn't work. I suggest reviewing the rules on independent contractor vs employee at the IRS site.
  • Feb 21, 2008, 10:56 AM
    Wildsporty
    You said the magic words "My employee". If he is an employee you must collect payroll taxes, file them with the government and give the employee a W-2 at the end of the year.

    If you need help with this let me know.

    Shirley
  • Mar 7, 2008, 12:15 PM
    AtlantaTaxExpert
    Agreed; if you pay an hourly wage, then he/she is an employee, NOT an independent contractor.

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