I have come to the decision to hire someone as a customer support rep for my business (located in Arkansas). We have agreed upon a salary of $25/week for minor work (redirecting calls, filing papers, and answering a few support requests. My question is, what forms do I need to file with the IRS and to ensure that everything is legal and proper?
Thanks for taking a moment to help with my question!
You would need to have an EIN number, as well as pay payroll tax, and take taxes out of your employees pay check. You need a CPA, who can do this for you. Don't cut costs. Also look into stating an employee as an independent contractor, seeing you do not pay much.
Thanks for the advice guys! Yes, I have a meeting with a CPA next week Also, there is a typo in my post above. The salary is $125/week. I did not know if hiring as a subcontractor would be an option or not. I already have an EIN and payroll can be taken care of through Quickbooks or the CPA. I just wanted your thoughts and opinions on what would be the best route to take. I will definitely go with the CPA, but I might look in to subcontracting also.
Also, there is a typo in my post above. The salary is $125/week.
LOL, I was wondering at the first time I saw your first post ($25/week) - that was very cheap and even lower than the standard monthly payment rate in my country
They don't even need to pay taxes if their monthly salary is lower than the standard salary (less than ± $150/month).
$125/week is quite low. I'm not too sure what kind of an agreement you guys have with him but I don't really know you're going to really "HIRE" him with the hourly wage of $3.XX. At any point of time, if he likes I do feel that he could just file a claim against you coz you're paying him less than minimum wage.
Be careful how you're going to "hire" this person. I doubt that paying $125/week is going to be easy to declare. Paying less than minimum wage is kinda hard too.
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