Hiring & Paying a Virtual Assistant: what is needed to make sure it is in compliance w/using 1099’s at year end?


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  • I will likely need to have a virtual assistant to help me w/some marketing research (for phone numbers, etc) and am wondering if anyone has any knowledge of how to make sure that I am in compliance wi/IRS and Calif re: issuing 1099’s at year end; vs employee status (w2’s). ?

    Do I need to make sure the Virtual Assistant has a valid business license of their own?

    Will I need to ask them for their Social Security number?

    Should he/she invoice me per project as a lump sum; or is it acceptable for them to bill me by the hour?

    I have read in a tax-strategist’s newsletter that the IRS is now trying to stop allowing independent contractor status of many types of work; as of this year…..and will have a form inserted in the taxpayer’s package this year that allows the taxpayer to inform the IRS if they feel they were improperly classified as Independent Contractor vs Employee……

    Does anyone know what is the appropriate way to approach using the services of a Virtual Assistant relative to IRS/State income tax reportings?

    Thk you
    Donna

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