ForumsTaxes and Payroll

First lets get the terminology correct. When you issue someone a 1099, that person is an independent contractor. Definitely not to be confused with an employee. An employee has social security and medicare withheld from their checks. Hopefully you have taken into consideration the duties of the contractors and they really are contractors. If not, you can email me back.

In regrds to you questions regarding taking online application. Go ahead and take the application online. Choose the people you are interested in and proceed through the hiring process of this contract position. Once you have decided to hire someone, then you request they complete a W-9. The W-9 requests their name, address, social or EIN number. This is standard practice to request. you can also request this information during the background checks if you plan on doing that as well. When I was the tax director, my rule is that I cannot issue that first check out until I have a signed W-9 on file. That will motivate them to get the W-9 back to you in a timely manner.

Being 1099 employees means they are independent contractors that have their own business. In my tax practice I always recommend that they apply for an EIN number and use it in lieu of their social security number to prevent identity theft. So would encourage them to apply for a EIN number at www.irs.gov . You can also find a free copy of the W-9 there as well.

Make sure you take care of this as the IRS is forgiving later if you get auditited.

you are welcome to call me (817) 481-3784. I am the owner of a tax practice and lecture across the country on tax issues. Would be glad to assist if you need help. My email is dawezell@verizon.net. website is www.wendyezellcpa.com .

It is always good to have a professional that can answer questions.

Thanks and happy hunting!