Do businesses have to report taxes and file tax returns for affiliates that work under them?

Question

Do businesses have to report taxes and file tax returns for affiliates that work under them?

Answer 1

If you work with independent contractors then you need to fill out a Form W-9 or something like that. I get one, but I can't remember the number for sure right now lol. You need to get that to them so they know their taxable income you've paid them.

You want to take the amounts you paid them off your income for sure. You take it off before any self employment tax is calculated for your own tax basis.

They file their own tax returns, but you send in the w-9 form, or whatever it is.

If you can't find them to send it then document the search so the IRS knows you tried, and deduct what you paid them as expense anyway.

If you are on an employer employee relationship then you have to do taxes for them so their withholding is taken out. They still do their own returns though, but you do withholding stuff.

Answer 2

You have to report taxes on income that YOUR business has brought in, the affiliates depending on their status W-4, or 1099? Do you have a tax man or a CPA this is a question for them to answer. Consider this membership which covers you with a CPA and Financial advisor's to name just a couple benefits. www.fdidvd.com/ayscott05.