Legal Question in Business Law in Virginia

New Employee

Hi,

Our company just developed and we have 1 employee currently, asside from the owner. The company is a sole Proprietorship construction company. I'd like to know what deductions we need to make from his paycheck, and how we file to deduct. Also, if we put him on a 1099 instead of deducting taxes from his paycheck, do we beneift from that? Also, could the owner pay social security on a monthly basis instead of at the end, if so, how does this work? Please let me know. Thanks.


Asked on 4/09/07, 10:54 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: New Employee

All required state and federal tax deductions must be deducted and remitted periodically to the state department of taxation and the IRS. 1099's are for independent contractors and not for company employees and are not something that an employer can decide to utilize as an option unless the person doing work for him or her actually fits the description of an independent contractor under DOL(Dept. of Labor) criteria.

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Answered on 4/09/07, 11:13 am


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