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Updated over 6 years ago on . Most recent reply

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44
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19
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Daric Myers
  • Gillette, WY
19
Votes |
44
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Hiring a PA locally instead of Upwork.com

Daric Myers
  • Gillette, WY
Posted
I have an LLC and would like to contract some of my less productive jobs out to a company like upwork. For what they charge I could hire locally to single mothers and other struggling people in my community. I need advice on moving forward. Do I pay cash, do track and give 1099? What info do they need? Upwork would certainly be easier, but I'm committed to making my community better. Any info is much appreciated. Thank you

Most Popular Reply

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
5,982
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5,105
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

@Daric Myers

If the work they do is for your personal needs, like errands - then just pay cash.

If you hire them for business tasks, and you are going to pay them less than $600 over the calendar year - pay with checks or PayPal.

If you're paying anybody more than $600 per year for business tasks, you will need to issue them a 1099-MISC. So you will need to warn them ahead of time and collect their full name, address, and SSN before they start. After you paid them, they often refuse to release this information to you.

  • Michael Plaks
  • Loading replies...