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Subject:Re: tax issue -- writers working for me? From:Kenneth Mauro <kmauro -at- AMERITECH -dot- NET> Date:Sun, 28 Mar 1999 12:50:58 -0600
Anna Sherman wrote:
>
> Can someone explain the tax implications that arise if I'm contracting for a
> company (getting $x an hour) and I have other writers that I farm work out to
> (at $x-10 or 20 an hour)?
As an independent I have used independent illustrators as
subcontractors. I keep things simple and send each one a 1099-MISC in
January for work done the previous year. You can get a 1099 package,
with forms and the transmittal sheet, at an office supply store. Every
year, my tax guy looks over what I sent in and puts it in the pile o'
paper going to Kansas City.
Maybe I'm just lucky or too small a blip to show on their radar screen,
but I haven't had any problems with the IRS nor have my subcontractors.
Be careful, know the tax law or know someone who does, but don't be
paralyzed by fear of the IRS either.
Ken Mauro
Schaumburg, IL
Winner of no awards, but still feeling pretty good about myself.