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Question
If I hire ChatGPT to do work for me, do I need to pay employment taxes?
AI accountant’s answer:
If you're hiring ChatGPT as an AI-based service provided by OpenAI, you typically wouldn't have to pay employment taxes. AI services are generally treated as a software or digital service, not as an employee. The fees you pay for using ChatGPT could be considered a business expense, which may possibly be deducted based on the nature of your business and how the service is used. However, employment taxes typically apply to human employees or certain types of non-employee compensation, such as payments to independent contractors or freelancers. Keep in mind, tax rules may vary depending on your specific situation, so it's always a good idea to consult a tax professional for guidance applicable to your circumstances.
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Michael Eaton, CPA
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