In a C Corporation, can independent contracters salaries be written off like employee salaries?
Answer:
no
try S-Corporation
Yes, contractor salaries and employee salaries can be written off the same way.
There are not too much difference on tax benefits form C corporations and S corporation. Depending on what your business is about.
I am not quite sure what your question is. I am assuming that you are hiring some people through the independent contractor status while some other people they are paid as regular employees.
With independent contractors, you will generate a 1099 for their earnings. You are not required to take payroll deductions for them nor are you required to pay the employer's share of the payroll taxes. With regular employees, you will need to generate a W-2 and do all the necessary deductions like any payroll functions.
Both expenses regardless of whether it is through the 1099 or the W-2 are costs of doing business and can be charged as payroll or labor expenses. It also should not have anything to do with whether you are a C or an S corporation. If you are the employer, hiring through the independent contrator status is a lot impler as far as paper work is concerned. The employee on the other has to keep tap of his or her tax liabilities and put some of the earnings aside. Otherwise , there will be a major nose bleed when the annual tax filing comes up.
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