Wednesday, September 16, 2009
Contract Labor Expenses
Contract Labor is a tricky category. Basically, anyone you pay over $600 during a year and is not a corporation is considered an outside contractor. This does not mean people who regularly work for you, more on this later. If you do real estate and pay someone to paint, fix the walls do landscaping, etc. they are contract labor. If you have a business that employs day labor, or other people who work for you on an occasional basis are contractors. This also means that you need to send them a 1099 tax form for the year, so you need to get all their information, including current address and social security to be able to send them the 1099 tax form.
Posted by Alamo Bookkeeping Associates