David Flaschen wrote:

- quote -

If you don't even know the answer to this one, I see no
point in issuing answers to the other questions. You need
[tax] professional help now.

- quote -

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DFlaschen[at]Yahoo.com (David Flaschen) wrote:

- quote -

If you pay them more than $600 in a year, you are required
to furnish a 109MISC (with copy to the IRS). See the
1099-MISC instructions for exceptions.

- quote -

Yes, as business expenses.

- quote -

Line 48, as "contract labor). Then carry to Line 27 on the front.

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- quote -

Yes, you do, if you pay them more than $600 in a year.

- quote -

Yes.

- quote -

We generally put them on the other expenses area of the C
and list them as "sublet"

Carol

If you awoke to find yourself a success, you weren't asleep.
Semper Gumby (Always Flexible)

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David Flaschen wrote:

- quote -

You used the word "employee". If these ARE temporary
employees, you have to obtain a Federal EIN, a state ID
number, and file the appropriate employment tax returns.
It's then deductible on line 26 (Wages). (I think CA's
limit for filing employment tax returns is $100 total wages
per quarter. Other states' limits and Federal limits may be
higher.)

If these are really contractors, then you still have to
issue 1099s (if over $600 to a single person in a year).
I'd suggest line 17 of Schedule C (Legal and professional
services) for the deduction -- if they're not professional
services, then they ARE probably employees.

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DFlaschen[at]Yahoo.com (David Flaschen) writes:

- quote -

Since this is the second basic Schedule C question you've
posted, I hope that you're relatively new at this. I strong
urge anyone going into a business to spend some money on an
accountant. In a pretty quick session you could find out
what types of expenses to track, how to track them, and what
your filing and payment requirements are. It will be money
well spent.

Phil Marti
Topeka, KS

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Sometimes in running my business as a computer consultant, I
will pay someone for helping me. Typically, I just mail
them a check.

Questions:
1. Do I have to follow some "rules" about using outside
employees? For example, do I have to make them 1099s?
(I sure hope not!)
2. Are these expenses deductible?
3. Where do I record them on Schedule C?

Thank you.

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