1099 vs W2: How Should You Pay Your Employees?

1099 vs W2 employee, which on should you choose as a business owner? Well the answer may surprise you because there are many pros & cons that you have to look at before making your decision.
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So in this video, we’re going to discuss 1099 vs W2 and which one may be better for your business.
Here’s what we’re going to cover.
#1 - What are going to define what a 1099 worker is and what a w2 worker is
#2 - We are going to clearly define the differences
#3 - We are going to look at what is best for your business
And lastly #4 - we’re going to wrap up by looking at some scenarios that may help you make final decisions.
Suggested video to watch next: "IRS Cracks Down on Employee vs Contractor Rules" • 1099 vs W2 | IRS Crack...
Alright now we’ve got that out of the way, let's go ahead and dive in by defining what is a 1099 worker and what is a W2 worker.
So, what is a 1099 Worker?
A 1099 worker - or also referred to as an independent contractor - generally provides specific services as defined by a written contract.
Freelancers and consultants are often declared as an independent contractor and thus are self-employed. So they are business owners themselves who likely work with multiple clients.
Independent contractors have complete control over how they execute your contract.
So if they wanted to hire a team to help then they could… so basically they control their own profits and expenses.
Now usually, a business will engage with an independent contractor for a specific period of time and with a specific contract.
But that engagement can be renewed as many times as the businesses would like.
So take your time and watch this entire video to get some game-changing information. '
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[@LYFEAccounting]

UPDATE: Suggested video to watch next: "IRS Cracks Down on Employee vs Contractor Rules" kzbin.info/www/bejne/aJuzpWmpeL16kKM

[@AlisonErasmus-t9e]

the pace of your speech, power point outline of key points and the simplicity of your explanation is fantastic.

[@zachwillason]

What about from the employee perspective? Can you break this down for them, for their benefit?

[@MikeTXBerry]

Video begins at 2:26. You're welcome

[@karenoliver1334]

I love how detailed this video. Its an enlightenment. Thank you

[@scientist100]

Sceneario: 1. Be at the work site from 9am to 6pm - 5 days a week. 2. No overtime if over 40 hours per week. 3. No paid PTO. 4. Clock in using ADP & get paid hourly. Is this a W2 or 1099-NEC? Did I mention no paid holidays?

[@MaruskaStarshaya]

it's a scammed w2 employee 😁

[@pattylamorena8111]

What a terrible company to work for

[@nakisha360]

Great question. This is how most CNA’s and Direct Care workers are scheduled and paid when they work. Would also like to know if this is considered 1099 or W2 worker?

[@prt5881]

I would like to know what are the financial / tax pros and cons of me hiring a W2 vs contracting a 1099?

[@scientist100]

@@prt5881 1099 would be best in your scenario but mind you, you will pay premium prices and not what you'd normally pay a regular w2. So, in theory, all 1099 are contractors and they dictate their price, not you. You can always make suggestion based on what you have as far as the job insurance. Let's say you have a job that will take 1 month. That's assured job for the contractor. Then he will come up with his estimate and it's no longer an hourly but a contract. With w2, you have other expenses to worry about such as paying hald of their taxes, workers comp, insurance, etc on top of their regular pay.

[@ThermalSolutionsHVACR]

All the contracting companies I worked for payed me as a independent contractor.. when in reality I was sn EMPLOYEE.. now as a business owner, I will do the same, of course,in attempt to keep overhead at minimun as possible

[@ThermalSolutionsHVACR]

I believe workman comp alone is around 80$ a month.. depending on the insurance, but that's around the price

[@aguibousangare9299]

Do you know which insurance is good?

[@ThermalSolutionsHVACR]

​@@aguibousangare9299for workman's comp? Or work insurance ?

[@Dvegastyle]

What they did doesn’t mean they did it right. They just get lucky until get caught. The same waits for you now

[@music7774life]

1. Do you have to have a license to qualify as a 1099? 2. Do employers have to have workman's comp for 1099 independent contractors? 3. Is 1099 considered employee or independent contractor? 4. How to Hire a 1099 independent contractor ? Documents needed and a list of process? 5. Can the 1099 IC work in the same building as the employer ? (California Laws) (Trade: Warehouse work and Manufacturing)

[@slimjimmichael]

Can an independent contractor sue you if they get hurt on the job? Cleaning stuff ect. I know that us what workman's comp is for.

[@superstarvonhouston1]

I support you bro 💪🏽

[@LYFEAccounting]

Its appreciated! Thanks for supporting.

[@user-sl3bx6gj3]

incredibly helpful. well done, sir.

[@DougWalton]

Great video. Informative and entertaining.

[@princessp1361]

Yes I love to educate myself ❤ great video

[@davidlopez-rl4sh]

So eventually both is the correct answer?

[@PatrickDcoldest]

Quick question! I have a trucking company, I own the truck and trailer but my driver drives on his time and it’s flexible. All he does is car hauling so I want to die a independent contractor plus he has his own LLC I pay his check to

[@KGs_Place]

Very informative and the presentation was excellent! Thank you.

[@scrappychildhood6633]

Not all W-2 employee. Some Start off as W-2 and become there own boss eventually. AKA Transtion period.

[@galaxyabstractancestraltri7046]

Thank you so much 💓 I love learning from you

[@santaniebrown3721]

Half way in, excellent video!! 🙏👏

[@LYFEAccounting]

Yes! Thank you!

[@lorettaasata5940]

Amazing and great examples. Thanks so much.

[@Bossstyles]

Great advice man. Thanks!

[@LYFEAccounting]

You bet!

[@1lesliebrennan]

Good video what's the music in the intro?

[@ephriam-house]

This was extremely helpful. Question, who did your video editing????

[@DrJulieReyes]

Great video

[@Cantrell5051]

Great video! Thanks man!!

[@smoovaatl]

I’m self employed personal trainer so I’m the owner and the worker but I want taxes taken out like a regular worker so I don’t have to deal with it at the end of the year! What are my options?

[@MaruskaStarshaya]

Duh, hire an accountant

[@Grant849]

Make quarterly estimated tax payments to the IRS

[@BarsUpEntertainment]

This video was really helpful! What about taxes for the employer? What’s the difference of each?

[@walterstanford8162]

1099 = Your own business W-2 is an actual company like subway or Walmart (But some companies use a 1099 tax form as well which makes it even more complicated and confusing).

[@karim-Merahi]

Good Video, Nice Advices

[@music7774life]

Do you have to provide workman's comp for 1099 employee

[@Steelersgurl]

if we use w-2 ...do you really have to pay for health insurance for your employees? if its a small business?

[@MaruskaStarshaya]

depends on the laws

[@Grant849]

No, need over 50 employees

[@aligregi9106]

what would you say about hirering a pool guy for 2 days a week?

[@indahood3991]

Love the videos man! Question, I’m going to start a service based business in auto detailing. Would 1099 be the best way to go about it? Then as business grows translation into w2

[@scientist100]

1099 and expect charges to be triple from normal hourly or more.

[@ASKQUESTIONLATERS]

The company that I got hired with they want me to fill out a w9 tax form . I’m not the owner of the company . I just work a hourly

[@scrappychildhood6633]

I am colored person, mentally challanged like 1099 because I get 9600 tax deducation and 15k tax credit for transporation cost(uber,lyft,ECT)

[@ghoetzinjal2660]

Is there a book where I can read about all this?

[@syebethel]

Hourly or sourly? Weekly or very weakly? 😅😅

[@itsdetroitjai]

It was the W2 joke for me. 🤦🏽‍♀️😂

[@LYFEAccounting]

FINALLY! Someone gets it ;)

[@shawnfrancis2459]

52/hr on W2 or 55/hr on 1099. which is better and how?

[@scientist100]

Usually for 1099 all you do is pay one flat fee and you're off the hook. No different than paying a third party company to do work for you and charge you for it. W2, you usually pay 6% of the employee taxes, insurance and additional payroll fees.

[@mikeguyton7252]

You will get paid the exact amount your owed with a W-2 everytime. With a 1099 so many things can switch up on payday. Sometimes you might not get paid at all working a 1099.

[@SP-Demos]

awesome vid

[@joshais1654]

Ok if a w2 worker don’t use nun of the benefits a employer offer can they switch over to the 1099 or W8-Ben

[@justicek.foster2160]

loved it!

[@repa2919]

thanks

[@christinajones7319]

Ty

[@lcmlcm2460]

Good video

[@LYFEAccounting]

Glad you enjoyed it. Which option are you leaning toward?

[@robwilburn3088]

as a current w2 contractor I would never work for anyone that did a C2C or 1099 it's the biggest con in the game...

[@teikahunter6317]

Can you explain a W2 contractor ? My situation there’s a small business who asked if they can sub contract for me but do not carry all the legal documents to do that in my state . They have a sole proprietor as well as a company but want to sub contract I would love to have them in my team but I’m kinda confused on how this all works

[@matalebtube4900]

I have a company and I have foreign employees and I pay them per month $3000 in total, just wanted to know if there was a way for me to use it in Tax deduction? please help

[@Bobthrbuilder111]

Get them a working visa

[@matalebtube4900]

@@Bobthrbuilder111 I don't think they will issue any, They are from Afghanistan.

[@Romandaud]

@@matalebtube4900 what kind of jobs they are doing for you

[@sustanciagaming5973]

So basically theres no benefit to having W2 employees. Only higher expenses.

[@LYFEAccounting]

I wouldn’t say that, when you have a W2 employee they work according to your standards and schedules

[@pattylamorena8111]

That's what I got from everything lol

[@stahaz1]

Spelling..."determining"

[@kingreyes7917]

Rich vs poor mindset 🤓

[@kokallan]

Get to the point already!

[@uzomad]

They never do. Just word soup…

[@dvalerio2412]

Thank you so much, I really needed this info. Thanks for sharing 😍