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Paying Employees for Side Business Services: Payroll or 1099?
May 1, 2025
Q. We have an employee at our college that also has a business with her social security number (1099 supplier) and she will be providing services for a speaking engagement through her business. Our practice at the college is to pay them through payroll? What do you think?
A.
(Answered by IOFM's third-party tax expert)
IRS guidance gives examples of where a W-2 employee might also receive a 1099 as a contractor.One example that's given is of an employee at a garden center (W-2). The employee is…
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