Classify Website Maintenance provided by a Contractor - Contract Labor or Office Expense
It can be confusing to try to figure out if you should be entering your expenses as Contract Labor or Wages. ... Contract Labor is for individuals you pay, but do not consider to be your employee. This would include any sub-contractors for whom you issued a 1099-Misc form
We pay a contractor monthly to provide website design/maintenance and to help with Marketing key word searches. Would the payments be classified as Contract Labor, Marketing, or Office Expense?
Contract labor is the use of independent contractors. From a tax perspective, the difference between contract labor (or an independent contractor) and an employee is like day and night. The IRS's general rule is that "an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done."