What is the difference between a W-2 and a 1099 employee?
Determining whether a worker is a 1099 or W-2 can be difficult. The IRS relies on the “Common Law Test” in making worker status determinations. Please contact your CPA to be sure that you have your workers classified correctly. A W-2 employee is trained by the employer, only works for the employer, and the employer controls the methods and results of the work to be done. Employee wages are subject to FIT, SIT, FICA, SUTA, FUTA, workers compensation, etc.
