Re: Incorporation Blues

Subject: Re: Incorporation Blues
From: KLShaw <KLShaw -at- IX -dot- NETCOM -dot- COM>
Date: Tue, 11 Feb 1997 09:35:23 -0800

Dana B. Mackonis wrote:

<< I am now finding that many of the agencies have revised their
bookkeeping and will only pay a valid corporation on a 1099 basis if
that company has more than 2 employees. >>

Have you talked to your CPA? The system you describe doesn't sound
right. My company is also incorporated, and while we don't work through
agencies, we've never been paid on a 1099 basis. My understanding is
that 1099s are for reporting payments to independent contractors, while
W2s report employee salaries. As a corporation, you should receive
payment directly, which you report as income on your corporate tax
return. Good luck getting this straightened out.

Kim Shaw
Words & Graphics Inc.
KLShaw -at- ix -dot- netcom -dot- com

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