Question
If you do not get a Taxpayer Identification Number (TIN) from independent contractor Joan who earns $5,000 from your company in 2005, your company must:
If you do not get a Taxpayer Identification Number (TIN) from independent contractor Joan who earns $5,000 from your company in 2005, your company must:
Provide Joan with a 1099-MISC reporting the $5,000
Provide Joan with a 1099-MISC reporting the $5,000 and withholding federal income tax as you would for an employee
1099-MISC reporting the $5,000 and withholding federal income tax at the year 2005 backup tax rate of 28%
Withhold all payments from Joan until she gives you her TIN
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
6th edition
1292063467, 978-1292063461
