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Level 15

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I find this really strange, too. All of this:

"And are there any payments that should NOT be included? Car payment, auto insurance, gas, phone, life insurance, dental insurance.  

Secondly. We do issue a reimbursement for medicare directlty to the LLC. Do I need to 1099 this too?"

 

Is Personal. That is not Business-related. The Consultant charges you their reasonable rate and pays their own costs. You cannot be tracking those details like that as your breakdown of expense. You Pay that person, and all of this is Subcontractor Labor, is reported in Box 7. You do not break it down for them; you are not their bookkeeper running their personal or business life, in your own business records. Sheesh.

 

There is some violation of boundaries here, that would not go well if either party is audited by IRS or State, labor or worker comp. You should NEVER be paying anyone on this party's behalf, unless that is required by court order, such as Child Support.

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