3 ms·
What's W2?
by idoby 6y ago
What's W2?
- ranc1d 6y agobasically means working as a contractor in the US
- leereeves 6y agoW2 is the form on which wages are reported to the IRS (American tax collectors) by an employer.
- kube-system 6y agoThere are two worker classifications in the US which refer to the tax forms they get: "W2": An employee. A regular job. "1099": Independent contractor, freelancer.
- mywittyname 6y agoTo expand on this, the differences come down to taxation. There are taxes in the use called FICA that are half-paid for by the employer for W2 workers and not covered for 1099 employees. Also 1099 workers are able to deduct business-related expenses from their income ta.
- one2know 6y agoThe most important distinction is clients large and small will try to rip off 1099 workers. The state labor office will not help 1099 workers. They must hire lawyers sometimes to get payment.