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Subject:Re: Incorporation Blues From:KLShaw <KLShaw -at- IX -dot- NETCOM -dot- COM> Date:Tue, 11 Feb 1997 09:35:23 -0800
Dana B. Mackonis wrote:
<< I am now finding that many of the agencies have revised their
bookkeeping and will only pay a valid corporation on a 1099 basis if
that company has more than 2 employees. >>
Have you talked to your CPA? The system you describe doesn't sound
right. My company is also incorporated, and while we don't work through
agencies, we've never been paid on a 1099 basis. My understanding is
that 1099s are for reporting payments to independent contractors, while
W2s report employee salaries. As a corporation, you should receive
payment directly, which you report as income on your corporate tax
return. Good luck getting this straightened out.
Words & Graphics Inc.
KLShaw -at- ix -dot- netcom -dot- com