1099 vs W2 Employee

The primary difference between 1099 vs W2 employees is the different tax forms they each fill out. But there are other important differences between the two as well. Reference official IRS.gov website for more information.

Tax Forms

The terms W2 and 1099 refer to two different kinds of tax forms that workers and employers use each year. Employers have to fill out tax forms each year for income tax and any other taxes that apply to their workers or their business. People who work for themselves have to handle these taxes on their own with a 1099 tax form. 

Employees who need a W2 tax form are employees of the company. They work directly for a specific business. The company they work under puts together their W2 tax forms and sends the IRS the appropriate tax funds each year. 

Workers who need a 1099 tax form, work for themselves instead of working for a company. This means they have to do their own income