The Difference Between a 1099 and a W2

Nov 9, 2021

Do you know what the difference between a 1099 and a W2 is?

1099 Contractor

When you work for yourself by yourself and on your own schedule, you are a contractor with the 1099. A 1099 gives you the total amount that you have been paid during the year as a gross number. You are then responsible for reporting this income and any related expenses on your personal tax return.

W2 Employee

If you are expected to be at work during certain hours and your work is defined or directed by someone in the company, you may very well need to be a W2 employee instead.

When you are a W2 employee the self-employment taxes you would incur as a 1099 contractor are automatically taken out of your paycheck and are also paid by the company itself.

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