If you pay independent contractors, you may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business. If the following four conditions are met, you must generally report a payment as nonemployee compensation.
You made the payment to someone who is not your employee;
You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
You made the payment to an individual, partnership, estate, or in some cases, a corporation; and
You made payments to the payee of at least $600 during the year.
Have you paid anyone $600 or more?
Do you have a contract with the people you paid $600 or more?
Did they provide you with all the documentation needed to be your independent contractor?
Have you hired your KIDS yet? WHY NOT?
If you would like to learn more about this topic, please feel free to take Profit or Loss/Human Resources & Accounting Workshop.