1099 vs. W2 Employees: Avoid IRS Trouble With Our Classification Tips!

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  • Опубликовано: 11 окт 2024
  • Learn the difference between a 1099 vs. W2 employee so you can keep your business in the clear. The difference between 1099 vs. W2 workers can confuse a lot of small business owners. However, the distinction is an important one-for both the worker and your business. Not knowing how to properly classify a worker can result in serious financial and legal consequences. For our complete guide, visit: bit.ly/2qnW1Vo
    Our video covers:
    What is a W2 employee? (0:41)
    What is a 1099 worker? (1:11)
    Costs of 1099 vs. W2 employees (1:34)
    How to classify your workers (2:21)
    Consequences of misclassification (5:31)
    Which should you hire: W2 or 1099 (7:29)
    In this video, we provide a basic overview of the differences between 1099 vs. W-2 workers. This video is not intended to provide legal advice or to form a professional relationship. We suggest contacting a business lawyer for advice specific to your circumstances.
    Subscribe to our RUclips channel for more videos on how to help your business succeed: bit.ly/2LhY8nb
    Want to discover what financial options are available for your small business? Using Fundera’s proprietary technology, you can apply for financing with over 30 different lenders with one application, at no cost whatsoever. Get started today: bit.ly/2O3buD4

Комментарии • 36

  • @MrGaryg20047
    @MrGaryg20047 5 лет назад +8

    I worked as a 1099 employee for ScanStat Technologies in 2010 at Stanford Hospital and the Supervisor was treating us like regular employees instead of like independent contractors then the contractual company should of paid us like regular employees and I was laid off and got into some financial problems with the IRS but I got everything paid off and you have to make sure you have enough money in a financial institution before becoming a 1099 worker which I didn't at the time.

  • @rylenorth9783
    @rylenorth9783 2 года назад +1

    It’s an excellent and also educative video, But I got recommended through the RUclips comment session to Stray Admin, he’s good at making the W2 forms too. All I did was just to hit the RUclips search icon and type in Stray Administration, he popped afterwards.

  • @LonjeMarie7
    @LonjeMarie7 2 года назад +1

    Thank you this was so helpful! Knowledge is POWER!

  • @motorcycleislife8296
    @motorcycleislife8296 4 года назад +27

    "your business" yet the government has to know about it. We are slaves even as self employed

    • @rfarchives3320
      @rfarchives3320 4 года назад +3

      Yep. You still have no leverage with the government as self employed

    • @mattk8810
      @mattk8810 3 года назад

      @@rfarchives3320 yes you do.

    • @bobbyboy1797
      @bobbyboy1797 3 года назад

      Yes dumbass, no one is given free range.

  • @googleuser5663
    @googleuser5663 3 года назад +4

    W2 is better 30% of salary is benefits, when some one offers you 1099 do a counter offer and add 50% on their offer if they take it good if not walk away, example $10 an hour w2 not the same as 1099, as 1099 you are not an employee hours are negotiable and they cannot treat you as employee, 1099 has alot of hidden tax costs and creates more paper work yes you can write things off but 1099 you have a higher chance to have an audit for from the IRS, also 1099 no time labor limits they can work you as much as they want company has no liability and you are a write off for the, if you are making alot of money 1099 is ok if not is a hustle whatever they offer you 1099 deduct 30% and that is what you really make, 1099 is best to get an tax guy to do your taxes it gets complicated. This adds costs, example Uber horrible job at 1099 pay is low and you have to pay taxes at the end of the year no benefits and you have to alot of write offs to lower your taxes.
    Alot of companies pay low salary 1099 run like hell they are predators.

  • @veilenedream5825
    @veilenedream5825 3 года назад +3

    ugh it sucks that all of the videos that came up when i was looking for a video answering some of my ss8 questions are for protecting businesses. who's lookin out for the little little guys? lol i am coming for my ex employer so watch out everyone. do the right thing.

  • @cathyrobi3891
    @cathyrobi3891 2 года назад +1

    I'm being asked to provide paystub(s), W-2(s), 1099(s), or IRS Wage and Income Tax Transcript(s) for the first and last years of employment for all my past jobs for employment ..is this normal for the hiring process for a low level job? I've never been asked this before

  • @markblomstrom5070
    @markblomstrom5070 3 года назад +2

    Excellent job, thank you so much!

  • @alvisjenkins1305
    @alvisjenkins1305 8 месяцев назад

    Both 1099 and W-2 tax form is tax paid as a gift to the government per IRM Document # 6209.
    Question : Do you want to give your hard earned money to the government as a gift tax ?

  • @Nutsubidzeplato
    @Nutsubidzeplato 4 года назад +4

    This is an amazing video with valuable information. I have a question, if i am running a staffing agency and working with clients to hire temp-to-hire workers, that will eventually be hired by Client, will I need to hire the candidates on W2 or 1099? I appreciate your answer in advance.

  • @DonJuanzito
    @DonJuanzito 3 года назад +3

    I an individual who worked for a company for a months i think. She they paid for flights, motels; food, and tools. i didn't sign any papers. My supervisors kept calling me an employee. It was expected to be a 2 day gig but i was promised training and it never happened so i quit. (She's saying she fired me for some reason.) Anyways they want verification of who i am, and submission of a W9 form. What category do i fall into?
    (Just a side note: She's texting me saying I'm an illegal immigrant, saying she hopes i get deported, that i should put a bullet in my head, and that she's going to report me for tax evasion and try to get me persecuted to the fullest extent of the law. Can i sue her company for harassment and for not even paying me? This is strange for me)

    • @seatruth5737
      @seatruth5737 3 года назад +2

      Yes, you can sue her. You need proof that you weren't paid. Some kind of paperwork, text messages that you can print out, something stating your pay.

  • @angelajones4161
    @angelajones4161 3 года назад +2

    Very informative video

  • @Alchevibewithfurbabies
    @Alchevibewithfurbabies 3 года назад

    Thank you 😊
    This was an excellent explanation 👏👌👍

  • @Edgar_Franco
    @Edgar_Franco 5 лет назад +6

    I’m a loan officer and I’m strictly commission based. I’m in California as well.
    I’m currently a W2 employee which doesn’t make sense since I work independently generating my own business. Would I be better off as a 1099 employee?

    • @user-iu3cy2tx3c
      @user-iu3cy2tx3c Год назад

      Seems like you have the best of both worlds - you get the benefits without the micro-managing 👌

  • @cristalcastro7582
    @cristalcastro7582 4 года назад +3

    I’m a full time employee but my boss gave me a 1099? Any tips?

    • @irisrose4732
      @irisrose4732 4 года назад +4

      I'd consult a lawyer about this; as an employee, you don't file as a 1099.

    • @veilenedream5825
      @veilenedream5825 3 года назад +1

      this is too late of a response but you do file taxes and pay them as an independent contractor, but also file forms SS-8 and 8919 and send them in on or before the day you send your taxes in. SS-8 asks questions about your job that will prove if you were misclassified, and 8919 is to file to have the employer pay your medicare and social security taxes. you will have to pay them but you'll get reimbursed once the IRS makes a decision.

  • @madnan7963
    @madnan7963 4 года назад +2

    I work for my brother in his company, is it better to get paycheck or get 1099. Which one would be better for me?

    • @FunderaLedger
      @FunderaLedger  4 года назад +2

      It depends what you prefer. We would recommend being a W2 employee as you're entitled to more benefits and protections, such as overtime protections and retirement contributions.

    • @percyastronautstatus.8780
      @percyastronautstatus.8780 2 года назад

      Your asking her a question that YOU should know yourself . HOW IS SHE SUPPOSE to know what's better for YOU when you know your NUMBERS and she don't ????. You lazy thing ....

  • @johanaalmaraz7349
    @johanaalmaraz7349 3 года назад

    Question if I have a roofing corporation and I want to pay my worker as a 1099 do I get in trouble with the IRS? My worker don’t do taxes.

  • @user-dx4cc8sn1e
    @user-dx4cc8sn1e 4 года назад +2

    Can the employee get in trouble ?

    • @FunderaLedger
      @FunderaLedger  4 года назад

      What do you mean?

    • @charlieparker5678
      @charlieparker5678 2 года назад +1

      @@FunderaLedger Is it against the law for a company to misclassify an employee as a 1099 independent contractor?

  • @miriamvelazquez5583
    @miriamvelazquez5583 2 года назад

    Hi , my husband is a sub contractor . Should he be getting w2 form or 1099

  • @oraboudewyns9946
    @oraboudewyns9946 2 года назад

    This video is soo great 👍 and it helped me alot thanks to the video maker, but my cousin told me about one veliscyberclinic and I got my w2 ready