Information about the Differences between the 1099 Employee and the W-2 Employee
The payment of taxes is considered to be one of the most important things that you have to do especially so that you can avoid a lot of problems with the authorities. To be very careful about the documentation and, this is to be handled in the right way. It’s very important for you to realize that the tax implication for different people is usually different depending on what people do. One thing that you will notice is that you will only be able to have an easier time in relation to this especially if you’re careful about learning the differences between some of these documents that are used. It is good for you to realize that in relation to paying taxes, there are some huge differences especially when you’re careful about getting information from the right sources. It will be a very good idea if you need the differences between the W-2 and 1099 employee, these are some of the things that will help you distinguish these factors. There are very good platforms that are available today that you can be able to use and this website and article will be some of the places where you can get this information. The differences between these are usually very major and that is why you want to take yourself to look at them.
For your business, the W-2 employee is the person you have hired and it is a person who in the works part-time or full-time. For you the employer, you will be required to ensure that you have been able to withhold the required taxes in relation to them and these include, state and federal taxes, the Medicare and also Social Security. The payments of employment taxes on them will also have to be done. this kind of employee does not pay their own taxes and this is because they do not send them business because it is not their own and they just work for you. Being able to get the W-2 online will now be possible and it is something that you may want to consider for these employees. In addition to this, there is also the 1099 employee.
For the people who are self-employed and also independent contractors, it is very important for you to be very careful. Because these are independent people, there is no business will be required to withhold any taxes in relation to them, this is something that they are going to do on their own. For these kinds of individuals, it is important for them to learn how to fill the taxes on their own.