Taxes and paying friends and family
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Hi @B2017R,
Thank you for your post! I hope to clarify matters for you.
If you're being paid money for freelance work and then paying the team that you're managing, both the received payment and the payments you send should be Goods and Services payments. All payments for services should be paid this way, since services are being purchased. The sender of the payment is paying for the service that they're receiving from your business, and you're also paying for the services provided to your business by your team members. Friends and Family payments are intended solely for payments that have no exchange of Goods or Services involved. If things are done in this way, they will also be reported accurately should you need to review your payments sent vs your payments received for the freelance business you're conducting.
I hope this helps!
Olivia
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