W2, W4, W9, 1099 Tax Forms: What's the Difference? (And Which One Do You Need?)

In this video, I'll explain the differences between tax forms W2, W4, 1099, and W9. Many people get these mixed up; some are more associated with staff wages, such as full-time or part-time work, and independent contractor wages. So, in the video, we'll go over the differences between those forms.
-----------------
ONE-ON-ONE & GROUP COACHING 💰
I offer coaching over video chat in the areas of personal finance, small business, investing, and Quicken. You can book sessions here:
www.playlouder...
-------------------
COURSES ✅
I also offer a free and paid course on incorporating yourself and managing your new entity properly once it's set up. Use the links below to learn more.
INCORPORATE YOUR BUSINESS ($0)
Entity information and setting up an entity using IncFile
www.playlouder...
INCORPORATE & MANAGE YOUR BUSINESS ($197)
Entity setup, Federal Tax ID, S-corp election, State tax ID, Banking & Payroll
www.playlouder...
MY WEBSITE 🖥️
www.playlouder...
Play Louder is a financial management firm providing independent CFO services for businesses and high-income individuals. The Play Louder blog also serves as an invaluable resource to help individuals and business owners increase their net worth and plan better for their future.
---------------
DISCLAIMER: This video and description may contain affiliate links, meaning I'll receive a commission if you click on one of the product links. This helps support the channel and allows me to continue to make videos like this. I will never support or push a product I don't believe in. Thank you for the support!
Joe DiSanto is not a licensed CPA or Attorney. The content on PlayLouder.com is for informational and educational purposes only and should not be construed as professional financial, tax, or legal advice. Consult a licensed attorney, tax, or financial advisor if you need such advice.

[@Lykeamugg]

Very informative

[@PlayLouder]

glad to hear it.

[@Themitchclips]

Thank you! This helped.

[@PlayLouder]

You're welcome!

[@allie3482]

Is there a reason companies do not want 1099/W9? I have noticed a lot of freelance companies only offer W4/W2 even though I am a contractor and have a specific date range of the contract. I'm wondering why they are pushing the W4/W2 or only offering that as if it is a benefit to them.

[@PlayLouder]

Yes. There are fairly strict federal and state guidelines to determine if someone can be paid as a 1099er. Businesses have been getting audited more frequently in the last 5-10, years if they don't comply and are getting hit with large penalties. So they are following the guidelines more closely these days. I don't know where you fall within said guidelines, but that is the main reason. Why are there more audits? Im not totally sure, but my guess is that it's driven by lost tax revenue.

[@allie3482]

@@PlayLouder Thank you for answering! I'll have to look more into the guidelines as I only want a 1099/W9.

[@shootxyouxdown]

do you get taxed on the wages you put in your 401k? i thought they don't tax the money you put in 401k...

[@PlayLouder]

No, you don't get taxed on wages you put in a "Traditional" 401K. If it's a Roth 401 K, you pay tax on the wages before you put the money in. However, your withdrawals will not be taxed for a Roth. TRADITIONAL: No tax on way in, but tax on way out. ROTH: Tax on way in, no tax on way out. Both allow growth to happen tax-free while inside the account.