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EMPLOYEES VS INDEPENDENT CONTRACTORS In 2006 the Office of Management and Budget received information from the American Payroll Association regarding 1099 and wage reporting. The Internal Revenue

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What is employees vs independent contractors?

Employees are individuals who work for an employer under an employment contract, while independent contractors are self-employed individuals who provide services to businesses.

Who is required to file employees vs independent contractors?

Employers are required to file information about both employees and independent contractors.

How to fill out employees vs independent contractors?

Employers must provide information such as the individual's name, address, taxpayer identification number, and the income they received.

What is the purpose of employees vs independent contractors?

The purpose is to report income paid to individuals for tax reporting and compliance purposes.

What information must be reported on employees vs independent contractors?

Employers must report the individual's name, address, taxpayer identification number, and the income they received.

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