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Paying an individual as both an employee and a contractor in the same year
June 15, 2023
Q. Our CFO is leaving. In the interim, until we find a replacement, one of our past employees (who is now an independent contractor that I pay monthly) will become an employee and our CFO.The contractor's business might also cover other areas/services that the CFO will oversee. What are the IRS Classifications on this? The contractor is a corporation that i would not send a 1099-NEC to.
A.
(Answered by IOFM's third-party tax experts)
The federal tax regulations don't prohibit paying an…
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