04/06/2022
1099 or W2?
We are building amazing businesses and hopefully generational wealth and it's important to remember that as a BOSS / CEO / OWNER, we have to make sure to stay on top of compliance & regulations to ensure our businesses remain on the right side of the IRS and State Regulators.
So here is some information that will hopefully be helpful.
*Be sure you are paying your contractors or employees correctly to avoid penalties and possible interest with the federal government and/or your home states.
*For lots of reason most owners will pay contractors using 1099 method where no payroll tax deductions are required to be withheld or matched throughout the year by the business owner.
*Other owners will hire long-term employees, where there are requirements such as employee tax deductions, employer F**a and Medicare tax matches, unemployment insurance and more and a W2 is issued annually.
Keep these requirements in mind as you continue to grow your business.