Are we considered independent contractors and fill out 1099's or are our clients required to withhold taxes? i read somewhere that some people who do work like us are considered statutory employees, is this true? i live in NC.

Originally Posted by Lisa83

Are we considered independent contractors and fill out 1099's or are our clients required to withhold taxes?

We are business owners that are independent contractors. As business owners, we are responsible for our own self-employment taxes (the client does not pay them). We do not fill out 1099's (we receive them). Because clients can deduct our services, they would send us a 1099 to use for tax purposes if the requirements for doing so apply (one is being $600 or more that was paid to their VA). If you don't receive a 1099, you still must claim what the client paid on your tax return as income.

Quote:

i read somewhere that some people who do work like us are considered statutory employees, is this true? i live in NC.

Statutory employees must meet certain criteria to be considered a statutory employee. Info on statutory employees here: http://www.irs.gov/businesses/small/...179118,00.html

HTH a bit,

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Jules, SunRise Virtual Solutions - WordPress Customization & XHTML/CSS Web Sites

Good info Jules! I just wanted to follow up with a link to the CONTRACTS, LEGALESE, AND TAXES section here at VAF where there are a few conversations on this topic [oldies but goodies ]

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