Paid for gig but need to pay out others, how much do i set aside for taxes
Hey there-I'm a local musician who plays shows throughout Los Angeles, and I recently played a private show which paid $1500. I filled a w-9 out for the gig, and will receive a 1099 from the person who hired me. I have to pay out 4 other musicians for the gig, and my question is what makes the most sense for going about paying them? Will I end up paying taxes on $1500 or can I pay them out and claim that as payroll and only pay taxes on my portion ($300). Alternatively, should I just get w-9's from them and pay them out their money. Please let me know what makes sense and thank you for your help!
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