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About John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > work location
Expert: John Stancil, CPA
Date: 9/4/2008
Subject: work location
Question
QUESTION: Hi John, i have a S corp in the state of NJ. i will hire my father who live in NY but he will not be coming to my NJ office. he will be staying in his house in NY and i will send work over the computer. work includes organizing some files, data entry etc. i will hire him as a consultant since he will not be available all the time. at the end of the year i will give him a 1099. my question is, when he report that income at year end, does he has to pay both NY and NJ state taxes or NY states since he is not coming to NJ to work. thanks
ANSWER: Jose,
Thanks for your question.
He will be subject to tax in NY as long as the work he performs the work in NY and not in NJ.
However, I am concerned at your treating him as a 1099 independent contractor. From your description, it sounds as if he is an employee. His lack of availability at times is not a factor.
Hope this helps.
John Stancil, CPA
---------- FOLLOW-UP ----------
QUESTION: i not treating him as a consultant just because lack of availability. the reason i treated him as consultant was because it was his choice. he would like to work as consultant. is there a problem if i treat him as consultant? when can i treat someone as consultant?
Answer
Jose,
Review Form SS-8. It contains a list of about 20 criteria that determine if an employee is self-employed or an employee. Primarily, it is one of control. If you have a question about his proper classification, you can submit the SS-8 to the IRS for a ruling.
I would caution you that this is a hot-button for the IRS. They are aggressively pursuing companies who treat employees as independent contractors.
Hope this helps.
John Stancil, CPA
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