Do I give my assistant a 1099-Misc at the end of the year?

I hired an assistant recently to work in my office. Do I give the individual a 1099-Misc at the end of the year?

When you hire someone to work for you, that individual will either be classified as an employee or independent contractor for tax purposes. Failure to properly classify the worker can subject you to an IRS audit and possibly hefty interest and penalties amounts for failing to withhold and deposit payroll taxes.

Some factors to take into consideration to identify an independent contractor:

• Is the worker an integral part of the business?
• Does the worker supply his/her own equipment, materials, and tools?
• Are all necessary materials to complete the work supplied by the employer?
• Does the worker control his/her own hours of employment?
• Is the work is temporary or permanent?

For more information to properly classify an individual as an employee or independent contractor, review IRS Publication 1779.