workers w/out SSN

[cjm2783]

if my help doesnt have a SSN, how do i go about taking out taxes. i have two hispanics that work with me for me time to time.
i'm going to get my license this week and also tax ID#.... what are the steps i need to take to run the biz proper so i want have to take a big one when taxes come around next yr?

thanks

[toby]

To be legit, your helpers need to come up with a SSN before they get paid. If they can't produce one, they should not be working! You can pay them up to $600 and call them casual labor (which means no info needs to go to the IRS)but it is still a valid business expense. Once they hit $601 for the year you are required to give them a 1099 or W-2, which means they need some sort of tax id #.

[JeffM]

I've got one form name for you.... I-9. If you have a prospective employee that cannot provide the appropriate information to complete the form DO NOT HIRE them. You may not get caught but the liablility is yours if you do...

[MortNuke]

eek!

What's this world coming to when illegal aliens are used to perform labor that the white folk turn their noses up at? I dunno, those welfare and unemployment checks are lookin' mighty tempting compared to "undignified" bent-over labor in the hot sun.

"My son can't find work, there's no jobs."
"This is a jobless recovery!"
"What? You only match the first 4% of my 401K contributions? No thanks."

The horror.

[Stephen M.]

To be legit, your helpers need to come up with a SSN before they get paid. If they can't produce one, they should not be working! You can pay them up to $600 and call them casual labor (which means no info needs to go to the IRS)but it is still a valid business expense. Once they hit $601 for the year you are required to give them a 1099 or W-2, which means they need some sort of tax id #.

That works for Fed requirements, but most states, like WA, expect payroll taxes to be paid on any wages worked period.

By the way INS penalty for hiring undocumented workers is $10,000 per infraction; for you that's $20,000 for starters. The only way INS will find out is targeting certain industries on any given day and if somebody knows you hire undocumented workers and turns you in. That's not a chance I'd take.