Employees and Independent Contractors - Did you Hire Anyone?
If you have others working for you in your business who are not your children, they can either be considered an employee or an independent contractor. If you hire someone as an ‘employee’, you are thereby considered an ‘Employer’ and you will incur expenses beyond the employee’s wages, such as employment taxes, unemployment insurance and workers compensation insurance. If you hire someone as an 'independent contractor,' however, you are not responsible for those extra taxes, but you give up the control you would otherwise have over someone considered as an employee.
Make sure you have all independent contractors fill out a federal form W-9 prior to making any payments to them so you have the necessary information for year-end reporting requirements.
Note: Consult your tax professional to see if this fits your circumstances. This is not to be taken as tax advice. Please refer to our End User License Agreement.