Filing Taxes-Question concerning Social Security

Question

My grandmother is 63 years old and is drawing widow’s pension and disability through my late grandfather’s social security. She has been given her “ticket” to work. It states that she can only make a little over $12,000 a year.

I am thinking about hiring her for a job for my small business paying her $225 a week. (Which is $11,700-well under her what her “ticket to work” states)

However, I called my CPA to make sure and he is saying that since she is under 65 and I am treating her like an independent contractor (her using her own facilities) she will have to report the pay due to her making over the threshold of $6,000 and something for a single individual under age 65. And, she will have to pay taxes on that

I understand that Social Security states that if she makes over her what her “ticket to work” states, then she only really makes half of the amount that she earns over the limit.

But, why am I getting two different answers... one from Social Security with the ticket to work, and one from my CPA?

Help... I really want to help her out but I don’t want it biting her in the end.

-confused

Answer 1

You need to provide specifics about the job you are considering for her.  Why does your accountant believe she will be an independent contractor rather than an emplyee?

Answer 2

I am pretty sure that your CPA is just saying that she will have to pay taxes on her income just like anybody else, even if it doesn't affect her SS eligibility. You should probably call back with your questions though.