What You Should Know about the W-2 and 1099 Employee
If you pay your taxes, it is very easy for you to avoid a lot of problems. The one thing that you can be very sure of is that you supposed to be very careful with how the documentation is going to be done. Depending on what people do, you will notice that they usually have different tax implications. 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. You will just want to take your time to get all this information from the best 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.
One of the things that you will notice is that the W-2 employee is the hired employee and this is the person who usually works part-time or even full-time for the business. 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. It’s also very important for you to ensure that you’re going to be very careful about payment of employment taxes on them. If you have been comparing, you will notice that this is the employee who works for you, it is a very important and critical for you to understand. You’ll only be able to get the W-2 online because of this. There are also 1099 employees.
The 1099 employee is the kind of employee who is self-employed and independent. In relation to this, you’ll realize that these are who work for themselves, the company owners will not be required to withhold any taxes in relation to them, you are not the one who has employed them. The filing of the taxes will always be done on their own, it is something that you may want to look at in relation to this.