The payment of taxes is considered to be one of the most important things that you have to do especially so that you can avoid a lot of problems with the authorities. The one thing that you can be very sure of is that you supposed to be very careful with how the documentation is going to be done. Depending on what people do, you will notice that they usually have different tax implications. One thing that you will notice is that you will only be able to have an easier time in relation to this especially if you’re careful about learning the differences between some of these documents that are used. It is good for you to realize that in relation to paying taxes, there are some huge differences especially when you’re careful about getting information from the right sources. The W-2 and 1099 are some of the documents that are used but, is important for you to realize that you need to know the differences between them. There are very good platforms that are available today that you can be able to use and this website and article will be some of the places where you can get this information. The differences between these are usually very major and that is why you want to take yourself to look at them.
In your business, there are those employees that you have hired and, they work full-time or part-time, these are usually referred to as the ability to employees. In your payroll, it would be very important for you to withhold they required taxes in relation to the state and also the federal taxes and this is in addition to Social Security and also the Medicare. The payments of employment taxes on them will also have to be done. this kind of employee does not pay their own taxes and this is because they do not send them business because it is not their own and they just work for you. You’ll only be able to get the W-2 online because of this. The 1099 employee will also be another employee that may be there.
The 1099 employee is the kind of employee who is self-employed and independent. These people work for themselves and therefore, companies are not required to do anything in relation to withhold any taxes or benefits. The filing of the taxes will always be done on their own, it is something that you may want to look at in relation to this.