I have been a sole prop for a number of years and had my daughter helping to do taxes for me. I would just give her a 1099 as a contractor and she did her own thing. This year I have started an S corp and the S Corp pays me wages. My question is what do I do about my daughter. I have been thinking that I could just give her a 1099 as always but I got to thinking about it and since the S Corp is paying MY wages, I'm a little confused about how to pay her. any Idea's?
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If you are telling her when to work and what to do, she is an employee of the S corp and should be paid wages.
If you let her come in whenever she wants and leave whenever she wants, she could be an independent contractor.
Linda, EA -
Wake the Dead!
Geez, is this old Ken from Sierra Vista? One of our first members?
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