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Posted

My client is a financial advisor.  In 2019, he shared staff with a partner.  He paid the other advisor $11,019.50 directly in exchange for the help of the staff person who was on his payroll.  How should they each treat this staff member on their business taxes.  Should my client get a W-9 from him and issue a 1099-Misc?

Posted

Sounds like a consulting fee to the advisor with the employees, advisor employees should of continued to receive pay as a W-2 employee.  Advisor with employee just reports it as income and the offset is the wages they paid.

MAS

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