January 10, 2010
A very common mistake we see this time of year is families preparing and filing Form 1099 (the form used for independent contractors) rather than Form W-2 (the form used for employees).
Here's a simple rhyme to help you remember:
The correct form to file is a W-2
1099 is not fine
For your employee or you.
For families, this mistake means a potential tax evasion charge and expensive penalties. For the worker, it means higher taxes. Please note that the Form W-2 deadline is approaching. If you employed someone to work in your home (i.e. nanny, housekeeper, health aid, estate manager, personal assistant, etc.), you must mail the Form W-2 by the end of January. If you have questions or need help, just give us a call.
Note: If you're a Breedlove client, don't worry; we've already sent it to your employee(s) for you.