I have a gal who recently retired from her full-time job. She is on Social Security and I would like to have her work for me on a part-time basis. My office is in Delaware - she lives in NJ. What is the most advantageous way for her to be paid. If I make her an employee, can NJ taxes be withheld, as well as Delaware state tax? Is this the best way for her vs being an Independent Contractor?
Hello there, medicuscme.
Thanks for checking in with us. Let's get this straightened out for you.
You can setup taxes in QuickBooks Online for your employee. However, I recommend contacting your State to know what are specific taxes that should be assigned to your employee.
Once done, you can use the work location feature and assign the employee to the corresponding work location. A work location is where employees perform most of their job duties.
Once you have the information, I'd like to walk you through on how to set up work locations in QuickBooks Online:
To add a work location:
To assign employees to the new location:
To know more about work locations in QuickBooks Online, you can check out this article: Set up and assign a new work location.
In case you need assistance from a live support, I'd recommend calling our QuickBooks Online Payroll Support Team. They can help you in setting up work location.
That's it. Please know that I'm only a post away if you have further questions in QBO.
The OP's question is:
"What is the most advantageous way for her to be paid. If I make her an employee, can NJ taxes be withheld, as well as Delaware state tax? Is this the best way for her vs being an Independent Contractor? "
How does your answer address that question?
This is called Worker Classification, or as the IRS refers to it, Mis-classification: "Is this the best way for her vs being an Independent Contractor?"
That is a Legal issue, per the tasks, resources, control and requirements. You need to ask your own State Department of Labor, perhaps your own Lawyer. No one here knows your business or what that person will be doing. For instance, I am an Independent Contractor; No One controls my time, my work schedule, no one provides me with tools, my own computer is at risk of not working today, I buy all my own software, office supplies, pay for the internet, etc. And I don't work for you on a Routine basis. You are not my supervisor when you contract with me.
Yes, you are as usual correct.
I was hoping that when Intuit decided to fix their answer they'd say as much. Waiting with bated breath, really.