USA Profit sharing tax liabilities

[akgreen]

I am a small organic farmer. In former years, I hired seasonal workers and paid them as W2 employees or used short-term volunteers who were compensated with room and board. In 2020, this wasn't going to work, so when a local young farmer approached me with the idea of using my gardens in a profit-sharing arrangement, I figured I had nothing to lose. He grew produce; I marketed it through my farm store; and we split the net profits %60-%40. I did not hire him, so there was no employment agreement and no W2; this was a sideline for him so there was no 1099. In March 2020 I had no expectation that there would be any profit to split, but it turned out to be a good year for small local produce operations and I ended up writing checks to him for approx. $2K, which I simply recorded as production labor expense, which is accurate, but the IRS and SSM obligations will be met only if my partner reports it as self-employment income.
Now as I am finishing up my own taxes, I am wondering (a) how I should have accounted for this; and (b) if there is anything I should now do to correct it.

 

[BIG E]

That's what you need an accountant for.
Being a do-it-yourselfer brings on issues after the fact you don't realize.

 

[akgreen]

This is very helpful. Thank you.