For the past 9 months, I have been running a small business. We changed a lot and now I am paying writers for the site. They are paid based on our profits, and how much they write. I am registered locally as a home-occupational business. Are there any steps I have to take now that I have other staff members? (BTW, they are working remotely from their homes)

For one thing, you need to get an EIN (Employer Identification Number). That's for the federal level. It really depends on your location though.

Originally posted by Timothy
For one thing, you need to get an EIN (Employer Identification Number).You'd only need an EIN if they are employees. It doesn't sound like they are, and it doesn't sound like they'd need to be, based on the small amount of information in Dwood's post.

I run a subscription-based lacrosse website. I have 4 writers, who I pay each month based on the company's income. They work from a remote location only writing a few articles each month and aren't paid hourly or with a salary

I'd make sure that your writers are setup as independent contractors/freelance writers. Which basically means them starting a sole proprietorship type of business and you hiring them on contract.

Offer to help them with this.

Or tell them that you'll have to let them go.

The law is pretty clear on employees and contractors, you don't want to get yourself into trouble.