mr2monster 0 Report post Posted September 1, 2004 Okay, heres the 411. haha. I want to pay my girl friend a referral fee for every person she signs for me. She's going to be making some calls and i told her that anyone that came through with a deal would earn her a referral fee. Thats the only way she is being paid. I dont want her hired as an employee as i am a subS corp and i think my CPA would hate me. My question is this, i dont want to screw her, well monitarily anyway, at the end of the year by 10-99ing her and making her pay more in taxes, etc. (maybe i have a misunderstanding of the 10-99?) how would i structure it to where i didnt have to 10-99 her but i would still get the write off for whatever that would be called... marketing? business growth, whatever??? That way she could just claim it as misc income and pay normal taxes on it. Also, while I'm here, how much do you pay for referrals that close? Share this post Link to post Share on other sites
mpine 0 Report post Posted September 1, 2004 I told my girlfriend that she can get $500 for every referral, or she can learn to do the deals and keep it all. Mike Share this post Link to post Share on other sites
Dave T 0 Report post Posted September 1, 2004 My question is this, i dont want to screw her, well monitarily anyway, at the end of the year by 10-99ing her and making her pay more in taxes how would i structure it to where i didnt have to 10-99 her but i would still get the write off for whatever that would be called... marketing? business growth, whatever??? That way she could just claim it as misc income and pay normal taxes on it.Some contradictions here. You don't want to report your girlfriend's referral fee income on a 1099-MISC, but yet, you want her to claim the referral fees as income and pay taxes on the income? If you pay your girlfriend (or anyone else who is not your employee) a total of $600 or more during the year, you are supposed to issue a 1099-MISC for the annual payment amount. Your girlfriend would still report the income on her 1040 as miscellaneous income, taxed at her ordinary income tax rate. Share this post Link to post Share on other sites
mr2monster 0 Report post Posted September 1, 2004 oh okay.. well thats fine then. I guess i just had a misunderstanding of the 10-99 form. Thanks DaveT Share this post Link to post Share on other sites
Brian - L.V. 0 Report post Posted December 21, 2004 If you pay your girlfriend (or anyone else who is not your employee) a total of $600 or more during the year, you are supposed to issue a 1099-MISC for the annual payment amount. How do you go about issuing a 1099-MISC? Is this something that my CPA would do for me? If not, where/how do you get this magical form? :xwink: Share this post Link to post Share on other sites
Kimberly 0 Report post Posted December 21, 2004 Yes, your CPA could do it for you --OR-- you could take a trip to your local IRS office to pick up a copy for free --OR-- go to the IRS online site --OR-- ... Share this post Link to post Share on other sites
