Hi, I am using QB 2018 on Desktop and have a vendor I would like to convert to a W-2 employee. she has worked with us for nearly a year already, on a per-hour basis.
I'd like to continue to pay her hourly as an employee. If she is paid $20/hr, my accountant determined it would be about $17.50/hr as an employee, after filing her taxes and workers comp.
Do I convert her existing vendor profile to an employee profile, or just create a new profile as an employee? Do I send her a 1099 and a W-2 at the end of the year, or will her vendor paychecks get taxed then too?
Can I continue to use the W-9 she submitted previously, or is there something additional I need?
New. You cannot convert and you need both types of records. There is a prohibition against duplicate names across lists so append a period to one of the names.
You need a W4 for an employee to determine withholdings. If she cannot provide proof of self-insurance while being 1099 your payments as 1099 may be included in your workers comp premium after audit.
Yes you will issue both 1099 and W2 and she is on her own to cover taxes on the 1099 earnings (unless you desire to convert all her previous this year earnings to W2 upon which you would owe nt only employer share but also employee share of taxes not taken out - as well as face underpayment and late payment charges)