What You Should Know about the W-2 and 1099 Employee
There are a lot of problems that you can avoid with the authorities when you’re careful about payment of taxes. You want to take your time to ensure that you have been able to handle the documentation in the right way in relation to this. It’s very important for you to realize that the tax implication for different people is usually different depending on what people do. It is important for you to consider how to learn the differences between the payments of different types of taxes and, who will be supposed to be paying them. If you are going to get any information, it has to be from the sources, you want to take your time to ensure that you have really been able to get all this information from the right places. 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. One of the things that are going to notice is that they will be major differences especially when you decide to use different platforms that are available today. Looking into these will be recommended for you.
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. 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. In addition to this, you’ll also realize that this is the employee that you can be able to help especially in the parts of the feeling of the taxes because, in relation to this, you’ll only need to get the W-2 online. In addition to this, there is also the 1099 employee.
It is important for you to be very careful especially for the people who are self-employed and independent contractors, these are usually referred to as the 1099 employees. 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.