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#1 (permalink)   01-18-2010 Ask Viki! Contributing Member Company name: Ask Viki! Ltd. New Help w/ Old-Fashioned Values: 3 Tips for Growing Your Business During Tough Time... My latest Twitter: I'm at Indian Lakes Campground http://t.co/8O...   Join Date: Feb 2008 Location: Wayne Township Ohio Posts: 223 Blog Entries: 7 Who pays the taxes? One of my sub's asked me about taxes, since I'm not her 'employer' I don't pay the taxes, I pay her flat rate or project fee and she is responsible for her taxes, otherwise I'll be considered her employer, correct? What is your opinion? __________________ Need Help? Ask Viki!

#2 (permalink)   01-18-2010 Cathryn Jones Contributing Member Company name: Assistants For Agents, LLC   Join Date: Aug 2009 Posts: 109 Re: Who pays the taxes? This should be addressed in your sub agreeement that you and the sub both signed. The IRS has a list of things that would make them consider the person your employee. I would encourage you to review all your processes and agreements with both your accountant and legal advisor to insure you are complying with all the rules. This was a helpful process for me and I would encourage all VAs to seek guidance from professionals. __________________ Cathryn Jones Assistants For Agents, LLC

#3 (permalink)   01-18-2010 Ask Viki! Contributing Member Company name: Ask Viki! Ltd. New Help w/ Old-Fashioned Values: 3 Tips for Growing Your Business During Tough Time... My latest Twitter: I'm at Indian Lakes Campground http://t.co/8O...   Join Date: Feb 2008 Location: Wayne Township Ohio Posts: 223 Blog Entries: 7 Re: Who pays the taxes? I should have searched the forums more, I just found this thread that answered my question too! Subcontractor vs Employee __________________ Need Help? Ask Viki!

#4 (permalink)   01-24-2010 AmyBRVA New Member Company name: BreemanRhodes Consulting My latest Twitter: RT @GlobalTradeNet: New Content Posted 2012/2013 C...   Join Date: Aug 2009 Location: Falls Church, VA Posts: 13 Re: Who pays the taxes? I am looking into this issue myself. I am finding out that if you sub contract out w/o paying the VA's taxes, you still have to file a 1099 on their behalf and send them a copy if it is over $600. I am sure there is more to this puzzle, but I would definately check with your accountant to see the proper way to do it.

#5 (permalink)   01-25-2010 Office Goddess Senior Member Company name: The Virtual Office Goddess, LLC   Join Date: Aug 2007 Location: Boulder, CO Posts: 2,966 Re: Who pays the taxes? Originally Posted by AmyBRVA I am looking into this issue myself. I am finding out that if you sub contract out w/o paying the VA's taxes, you still have to file a 1099 on their behalf and send them a copy if it is over $600. You are required to file a 1099 for ANY UNINCORPORATED VENDOR to whom you pay more than $600/year NOT just your subs. I highly recommend that ALL VAs find/take a basic bookkeeping class to keep from running afoul of "I didn't know I had to do that..." and getting penalized for it. Unfortunately, the IRS doesn't care about ignorance excuses... __________________ Lily Chambers, The Virtual Office Goddess, LLC Author "How to Do Your Own Small Business Bookkeeping"