Topic: Do I need to file a 1099 for my employees if they're paid in Bitcoin? (Read 2063 times)
February 21, 2015, 03:36:53 PM
Normally is the other way I would of expected and if paying in bitcoin if it is more than $500 from what I know last month as a friend was doing same sort of thing and asked him about this only needs to be declined if it is over $500 or so more. If it is then I would even just go down to local office or phone them and get the right advise for making payments in it.
legendary
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February 15, 2015, 11:50:56 PM
usually it is the other way around, the problem is if you treat employees as contractors. anyway I was using the term loosely. thx for responses.
February 15, 2015, 09:37:54 PM
Employees do not get 1099 forms. They get W-2 forms.
Independent contractors get 1099 forms.
If you are calling (an treating) your independent contractors as employees, then you may be in for a world of hurt if they ever file for - or the IRS demands - a form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
This thread could be evidence...
Independent contractors get 1099 forms.
If you are calling (an treating) your independent contractors as employees, then you may be in for a world of hurt if they ever file for - or the IRS demands - a form SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
This thread could be evidence...
February 10, 2015, 10:56:30 PM
If they are employees (opposed to contractors), then you are paying them in dollars but just the payment just happens to be in Bitcoins instead of cash, direct-deposit or jelly-beans. This dollar value is taxed and included on their W-2 like any other wage.
From your perspective it should be no different. If you normally pay them a fixed wage, you should use that dollar value and take any withholding. social security and Medicare taxes as normal. If you are paying them in fixed Bitcoins, you would need to calculate that dollar value as if you have paid them in cash, and calculate the appropriate taxes.
See Q11 in http://www.irs.gov/pub/irs-drop/n-14-21.pdf
From your perspective it should be no different. If you normally pay them a fixed wage, you should use that dollar value and take any withholding. social security and Medicare taxes as normal. If you are paying them in fixed Bitcoins, you would need to calculate that dollar value as if you have paid them in cash, and calculate the appropriate taxes.
See Q11 in http://www.irs.gov/pub/irs-drop/n-14-21.pdf
February 10, 2015, 05:19:33 PM
technically , they aren't paid any "dollars"...does anyone know?
What is 1099 ?
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
February 10, 2015, 05:16:32 PM
technically , they aren't paid any "dollars"...does anyone know?
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