Author Topic: Referral from a non-employer - what are tax implications?  (Read 323 times)

Randall Stephens

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Referral from a non-employer - what are tax implications?
« on: October 06, 2018, 09:25:01 AM »
I will be receiving a referral of $1,500 from a recruiting company that I sent a candidate to. Note, this is not my employer, but an independent agency that I have no affiliation with (other than having a friend I sent their way who got a job through them).

I imagine I'll report it on my federal/state income taxes?

Are there any additional taxes I should pay on it?

I'm not sure how they'll remit payment yet (they mentioned it can range from Paypal to getting a check in the mail - they are relatively new start-up).

Any suggestions on what I need to gather or report when it comes time?

Thanks!

P.S. Here is the company's referral page for reference - https://www.vettery.com/referrals

IsThisAGoodUsername

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Re: Referral from a non-employer - what are tax implications?
« Reply #1 on: October 06, 2018, 09:58:47 AM »
They might send you a 1099 at the end of the year. Might as well just wait and see what happens, and include whatever they send you in your 2018 filing paperwork...

Proud Foot

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Re: Referral from a non-employer - what are tax implications?
« Reply #2 on: October 08, 2018, 08:24:14 AM »
They should send you a 1099 at the end of the year. Did they ask you for a W-9? The 1099 is all you would need and you would report it on the "Other Income" line of the 1040.

katsiki

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Re: Referral from a non-employer - what are tax implications?
« Reply #3 on: October 08, 2018, 09:09:42 AM »
If they do not provide a 1099, you can report the income without it (and should, IMO).  My tax program calls this other income and buries it into a few sub-menus.