Is your new hire W2 employee or 1099 contractor?

This is also one of the most frequently asked questions that we receive. 

To make it easier for employers, IRS has provided guidelines via form SS8 regarding classification of employee vs Contractor.

If you do not classify this correctly, there is a high chance of receiving notices from federal and state agencies regarding the misclassification.

So, ensure you review the requirements of classifying your new employee. 

It is best to consult a Certified public accountant or tax professional if you are unclear about this classification. 

Please also refer to our previous blog article below :

Posted In: Tax

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