when does a small business employer NOT have to report an employees wages and taxes?

Question by jamzesmom: when does a small business employer NOT have to report an employees wages and taxes?
Like is there a limit to what she has to pay someone..like 600.00 a year? She says I am considered casual labor and as long as my wages dont exceed 600.00 she doesnt have to pay taxes and neither do I…This is a small bookstore. That I no longer work at by the way because she wanted to pay me 100 percent “store credit”.

Best answer:

Answer by Judy1
If you are an employee, they must take out taxes and give you a W-2 at the end of the year no matter how little you make.

If you work as an independent contractor, they only have to give you a 1099 if they pay you $ 600 or more in a calendar year. You still are required to report it on your tax return though if you made over $400, or if you file a return for any other reason.

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