How does social security function for self-employed help?
Situation for social security for self-employed help
Sep 20, 2006
1 Replies
Anyone who is self-employed in the US is required to pay their own Social Security -- both the employer and the employee share.
Based on the wording of your question I assume you are arranging for help who will be paid "on a 1099 basis". If you are, be sure that you are in compliance with the IRS guidelines since if you are not the IRS can rule that your help was/were actually your employees and you could be liable for any payments and fees (withholding taxes, unemployment, employers share of Social Security, etc.) that should have been paid.
This, incidentally, is the reason many large corporations will only engage consultants and contract help through a corporation
-- even one wholly owned by the person who is providing the services.
HTH Jerry
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