What You Should Know about the W-2 and 1099 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. 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. 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. 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. The W-2 and 1099 are some of the documents that are used but, is important for you to realize that you need to know the differences between them. 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. One of the reasons why it is something that you may want to look at is because there are some method differences between these.
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 is the employee who usually works for you, it is very important for you to know such differences. You’ll only be able to get the W-2 online because of this. 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. 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.