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. Depending on what people do, you will notice that they usually have different tax implications. There are documents that are usually used in the payment of taxes depending on who you are and you may want to learn the differences. You will just want to take your time to get all this information from the best sources. One of the things that you have to do is to ensure that you’re going to be very careful about understanding the difference between the W-2 and 1099 employee. 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. As you are probably going to realize, you’ll also be very important for you to ensure that you are able to do the payment of employment taxes but this will be on them. this is the employee who usually works for you, it is very important for you to know such differences. 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. 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. For these kinds of individuals, it is important for them to learn how to fill the taxes on their own.