Payroll and contractors
Hiring your first employee, running payroll, paying contractors and filing the forms that go with each.
18 guides in this topic
- Independent contractor or employee: how the IRS tells them apart4 minute readHow the IRS decides whether a worker is an independent contractor or an employee, the three kinds of evidence, state tests, and the cost of errors.
- How to pay contractors and file their 1099s3 minute readA start-to-finish process for paying US and foreign contractors: onboarding with a W-9, how to pay, tracking totals, and filing 1099-NEC at year end.
- 1099 filing deadlines and penalties3 minute readThe 2027 filing deadlines for Forms 1099-NEC, 1099-MISC and 1099-K covering 2026 payments, the penalty per late or wrong form, and how to limit the damage.
- How to run payroll for the first time2 minute readHow to run payroll for the first time: registrations, gross to net pay, withholding, depositing taxes, quarterly and yearly filings, and software.
- Payroll taxes explained: FICA, FUTA and state unemployment2 minute readThe payroll taxes US employers withhold and pay in 2026: income tax withholding, Social Security and Medicare, federal and state unemployment.
- Hiring your first employee: registrations and forms2 minute readWhat to do when hiring your first employee: EIN, state registrations, Forms W-4 and I-9, new hire reporting, workers' compensation, payroll set-up and posters.
- Paying foreign contractors from a US company2 minute readHow a US company pays foreign contractors: Form W-8BEN, when no 1099 or withholding is needed, services performed in the US, sanctions checks, and records.
- S corp owner payroll: how to put yourself on payroll2 minute readHow an S corp owner goes on payroll: setting a salary, registrations, running payroll, health insurance, retirement, distributions and W-2s.
- State unemployment tax: how to register2 minute readHow to register for state unemployment tax: when it is required, which state an employee belongs to, new employer rates, wage bases and reports.
- Payroll tax deposits: monthly vs semi-weekly schedules2 minute readThe payroll tax deposit schedule: the lookback period, monthly vs semi-weekly deposits, due dates, the $100,000 rule and late deposit penalties.
- Backup withholding: when you must withhold from a contractor2 minute readWhen a business must apply backup withholding: missing or wrong taxpayer numbers, IRS B notices, the 24% rate, Form 945 and how to stop it.
- How to correct a 1099 you already filed2 minute readHow to correct a 1099 you already filed: amount errors, name and TIN errors, wrong form type, filing corrections, recipient copies and penalties.
- Hiring family members in your business3 minute readThe tax rules for hiring family members: children under 18 in a parent's business, spouses, parents, corporations, reasonable pay and records.
- Employee benefits and how they are taxed: a small business overview3 minute readHow employee benefits are taxed in 2026: health, retirement, FSAs, commuter benefits, education and dependent care, gift cards and owners.
- Trust fund recovery penalty: why unpaid payroll tax becomes personal3 minute readHow the trust fund recovery penalty makes owners personally liable for unpaid payroll tax: who is responsible, the IRS process and prevention.
- Accountable plans: reimbursing expenses tax-free2 minute readHow an accountable plan lets a business reimburse expenses tax-free: the three rules, the 60 and 120 day safe harbors, mileage, home offices.
- Remote employees in another state: payroll and tax registration3 minute readPayroll for a remote employee in another state: withholding and unemployment registration, reciprocity, local taxes, nexus and labor rules.
- Worker misclassification: penalties and how to fix it3 minute readWorker misclassification penalties: back payroll taxes, section 3509 rates, the IRS settlement program, section 530 relief and Form SS-8.