How Do I know if an Individual is an Employee or Independent Contractor?
The distinction between a 1099 independent contractor and a W-2 employee is an important one, as this classification affects federal income tax, social security and Medicare taxes, as well as impacts eligibility for Medicare benefits. It is important that business owners correctly determine whether individuals are employees or self-employed.
If a company misclassifies a worker as an independent contractor that is actua
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