1099 Or W-2? This time of year that seems a logical question. It’s short for “independent contractor or employee?” If you’re an employee, you must be paid via a net check–on which tax withholdings are taken. That means you’ll receive an IRS Form W-2 from your employer in January the following year. in Public bookmarkswith 1099independent-contractorw2
California’s Tough New Independent Contractor Law The IRS, Department of Labor and many state agencies are taking aim at businesses using independent contractors. See IRS, DOL And States Mount Independent Contractor Attack. Why? Paying an independent contractor means no wage withholding, no employment taxes, no unemployment in Public bookmarkswith 1099independent-contractorw2
New Crackdown On Using Independent Contractors Whether to hire employees or independent contractors can seem like a no-brainer. With independent contractors you don’t have to withhold taxes or pay benefits and they are easier to fire. But if your “independent contractors” are reclassified the IRS can assess crippling retroactive penalties. See Ten Consequences of Reclassifying Independent Contractors as Employees. in Public bookmarkswith independent-contractor