I will be doing several events that will consist of a speed dating event and I will have someone host the event like an employee. I will also hire this same employee to cook and serve food at a different event. Can I hire this person as an independant contractor? I want to do this because I dont want to hire someone and then pay taxes or unemployment insurance.
Also I will hire a DJ for a big party that people pay to attend. Can this DJ be an independant contractor or can I just write him off as a buisness expense.
Also I need an IRS attorney for another matter that I will contact you for.
1 Answer from Attorneys
If the DJ is a one time deal and works for others, then it would seem to be pretty clear that he is an independant contractor. If you pay him $600 or more be sure to issue him a 1099. The other individual is more complicated. If he will work part time doing a few projects, but is free to work for others, he might qualify as an independant contractor. The IRS and DOR focus on issues of control. These cover the infamous "20 questions" but go into other rules of law as well. I would suggest you consult with a tax advisor as to the details of his work and the extent of control you exercise over how, when and where he does it.