Question
Watson, a sole proprietor, hired Jack, an independent contractor, to cut down several trees and remove the trees away from his office after a severe
Watson, a sole proprietor, hired Jack, an independent contractor, to cut down several trees and remove the trees away from his office after a severe storm. Watson paid Jack $650. Jack didn't furnish a W-9 to Watson.
This is a two-part question. Question 1: What form should Watson use to report the payments to Jack?
Question 2: How much tax should Watson withhold from the payment made to Jack?
a) From W-2; $156
b) Form 1099-NEC; $49.73
c) Form 1099-NEC; $0
d) Form 1099-NEC; $156
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Human Resource Management
Authors: Robert L. Mathis, John H. Jackson
13th Edition
053845315X, 978-0538453158
