They must pay federal income tax, just like everyone else, but at a far higher rate of 41. AP Photo/Kyusung. As a 1099 independent contractor, you are self-employed and unable to access the benefits your agency offers regular employees. C. garynk87 • 8 mo. A 1099 contractor is not subject to the control and direction of their client. Amended tax return. an idependant contractor and his workers are his employees. You can file W-2 forms online directly with the Social Security Administration through their Business Services Online portal. NFL players also have specific rights under the. Formed in 1994, NFL Players Inc. Now let’s take a look. They use a formula to determine when a player hits the $600 level: Prizes won minus entry fees plus bonuses = net profit. That's when you'll need to have them mailed or electronically sent to the people you. 9% to Medicare. How and when someone gets paid (hourly or salary on a set basis for an employee vs. This statement is important to note: As an employee, unreimbursed business expenses are not tax-deductible. So say it’s $10,000 1099 gross income fica/Medicare tax would be $1530 of tax, but on 1040 a deduction of $765 from income is taken for 1/2 of fica Medicare. Please go back to your income reporting form, be that a W2 or 1099. You can file 1099 forms and other 1099 forms online with the IRS through the Filing Information Returns Electronically (FIRE) system online. The same goes for termination. Further, there is no promise of a certain number of hours, days, or years of work. You also set their hours and schedules. “The new tax laws dramatically change baseball players. Quality benefits attract and retain high performers as well as increase morale. 4%. You can contact the IRS at 800. For the Reason Code select "H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2. Taxes are not usually withheld by the payer for 1099 forms. They must pay federal income tax, just like everyone else, but. W-2 forms must be received via mail or electronic filing on or before January 31 of the following year to the SSA. 2%. Received a W2 and 1099-NEC From the Same Employer. Taxes are not usually withheld by the payer for 1099 forms. Once you’ve been given your W2 form, you can work on filing your taxes. Even if part or all of your dividend was garnisheed, the entire. NFL NBA Megan Anderson Atlanta Hawks Los Angeles Lakers Boston Celtics Arsenal F. Here's a brief on what is W2 Contract and Corp to Corp with the difference in W2 vs C2C. Has this happened to anyone. Think of it like your weekly paycheck. Usually you can make ur "effective" tax rate around 10-15% as a percentage of ur total 1099 income. ToastNeo1. In contrast, 1099 workers are independent contractors and maintain more control and flexibility in their work methods. That is, social security tax is 12. That provides all the salaries and compensation you receive and covers all the taxes. Your employer will pay some or all of your. While both have their advantages, the best option is to focus on hiring employees who are W2-qualified. Employers pay half, or 7. The same is true for professional athletes in other leagues. NFL: $250 Million: Aaron Rodgers: NFL: $200 Million: Stephen Curry. Brock Osweiler’s 2016 tax filing was about as simple as you can get for an NFL player: With the Texans he played home games in. As a 1099 independent contractor, you are self-employed and unable to access the benefits your agency offers regular employees. g. You may receive a second W-2 from an insurer. S. 1099 vs W-2 is not a choice you get to make. So I received several months of severance pay last year, and my employer gave me a 1099. Social and Collaborative Work Environment. W2 vs. How and when someone gets paid (hourly or salary on a set basis for an employee vs. The 1099 Form Used by CRE Players A 1099 form is used to report non-employment income and there are a total of 21 information returns or 1099 forms. Dual Status Workers. Filing a W2 and 1099 in the Same Year Can Seem DifficultThis video will take you through the W-2 and 1099 forms that are sent to you by your employer and used to file your taxes. What information and copies does the W-2 require? Form W-2 has six copies: Copy A: employer sends to the Social Security Administration, or SSA; Copy B: employee files with the IRS for tax return purposesThe 1099 Form Used by CRE Players A 1099 form is used to report non-employment income and there are a total of 21 information returns or 1099 forms. W2 is better. ; Form 1099R reports. ago. It’s a record of an employee’s compensation, benefits and taxes withheld for a given tax year. The 1099-MISC reported amount is the amount attributable to the attorney fees amounts and other settlement fees. This means that, unlike a W2 employee, the business does not dictate certain terms of work for this particular worker. 2 6 23,511 Reply. , January 31, 2023 for wages/compensation paid in 2022). Generally, a 1099 worker is much cheaper for a company than hiring a W2 employee, as they don't need to provide benefits or withhold taxes. 1099-K: Profits made from merchant payments. RedSunFox • 8 mo. Churches will need to use this form if they made payments totaling $600 or more to a non-employee, such as an independent. The 1099-NEC information goes to the IRS, and the contractor uses the form to complete their income tax filing. About This Data. Social Security Tax (FICA): Social Security tax is withheld at a rate of 6. I am debating job opportunities that are W2 and 1099. Television. Welcome to our informative guide on purchasing a house with W-2 and 1099 income! Suppose you're considering buying a home and receiving payments from traditional employment (W-2) and self. $5,000 or. The NFL does not withhold employment taxes from its owners. (FL) LMHC. Employers generally have until January 31 to send employees W-2 forms for the previous tax year. 2% and the employer pays 6. The difference between IRS Forms W-9 vs 1099 is that the former is given to contractors for the purpose of collecting personal information, while the latter is for reporting wages to the IRS. splitting that cost 7. You also have to pay quarterly income taxes as a 1099 since your employer won't be withholding any taxes for you. Your choice determines if their tax information is reported with a W-2 or 1099 form. W-2 Employees. Taxpayers are required to report all sources of income on their. You will have less of a tax bill with the W-2 income. The payer reports the payments to the IRS, and. The difference between 1099 vs. com All professional baseball players are treated as employees by their respective teams. Depending on what state you’re in you may not be able to be 1099, both from your licensing board and from your state’s employment laws. Because employees are working for your company long-term, they’re likely to be more dedicated and committed to their work and role. An employee (common-law employee) A statutory employee. An employer pays half of this (7. A good rule of thumb is the 60/40 rule. Just a tax difference alone is $3,978 (7. Click Continue. In other words, to pay a 1099 contractor 20 per hour costs about 25 per hour, to pay a w2 employee 20 per hour costs about 40 dollars per hour. To report wages from a W-2: Click on Federal Taxes > Wages & Income. Each case must be examined independently to see if it is eligible for deduction. The classifiers 1099 and W2 refer to the end-of-year tax forms you get for each type of employment. Check out the 1999 Atlanta Falcons Roster, Stats, Schedule, Team Draftees, Injury Reports and more on Pro-Football-Reference. Being a W-2 employee with no benefits (no health insurance, 401K or even accruing vacation or sick days) doesn't allow for itemized expenses. Form W-2: Employees receive Form W-2, which shows basic information, in addition to total taxes and other. b. splitting that cost 7. Los trabajadores W2 no deben calcular su pago de impuesto por trabajo, porque las retenciones corren por parte del patrono o empleador. Hiring a 1099 vs a W2 employee to meet your business needs has advantages, disadvantages and legal implications. Fantasy sports players who win more than $600 generally get a Form 1099-MISC, or 1099-K, depending on how the money is paid out. There are valuable benefits as well. Another way to calculate this is:You will pay more taxes as a 1099 worker because you pay both the employer and employee portions of payroll taxes, including Social Security and Medicare. For most workers, a W-2 or 1099 is just a piece of paper they get at year-end to file their tax returns. Loan Out Corporations enable entertainment professionals. A 1099 is designed for someone with autonomy over their hours and how they do their job. Form 1099-MISC is different from Form W-2, which reports salary or hourly wages. In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered. The IRS requires each payment settlement entity to send you a Form 1099-K by January 31 to business and individuals that surpassed the threshold for the year. FICA taxes refer to the Federal Insurance Contributions Act. Since Uber provides this information directly to the IRS, you don’t have to include the 1099s forms with your tax return. Health/vision/dental insurance may be subsidized. Are NFL players w2 or 1099? These additional wage amounts are paid after the end of the season. The primary distinction between W2 vs 1099 workers lies in their employment relationship. If you do not receive your W-2 by February 15th, you can call the IRS at 800-829-1040. Technological innovations, a changing employer-employee relationship, and the rise of independent workers are just a few of the big trends shaping our evolving workforce landscape. Read on to learn more about why 1099 employment is not great for the best companies. If you work for more than one company, you’ll receive a 1099 tax form from each company. NFL players are paid weekly through the regular season, and there were 18 weeks this season, meaning Mathieu's paycheck was at least $808,333. Employee Benefits. Keep in mind that the transcript you receive from the IRS will only. 6% on income over $413,200, amounting to tax due from Mayweather of about $120 million, barring any tax deductions he could claim. Alaska PFD or capital gains distributions shown on a 1099-DIV, View solution in original post June 7, 2019 3:54 PM. W2 workers are considered employees, and their employers have a greater level of control over their work processes. You could also convert the 1099 wage to its W2 equivalent by subracting that 6. How can I tell if a job is W-2 vs 1099? You’ll see a “W2” label when viewing a W-2 opportunity in the app. No benefits: Employers are not obligated to provide any benefits to 1099 employees. e. If you are considering growing your team, you may wonder if you should hire a W2 employee or a 1099 contractor. I would base this decision on how much health insurance costs and how much vacation you'd get as an employee (w2). 585 from January to June, and then $0. Employees are sometimes referred to as W. We compared the 1099 vs W-2 forms, so you can quickly determine which you need to use and when to use it. Disadvantages of being a 1099 employee: Less job security: Unlike a W2 employee, a 1099 contractor is not guaranteed employment. You should contact your employer to find out whether you should have received a W-2 for the short-term disability payment before you add this info in TurboTax. RECOMMENDED RESORUCES FOR YO. A government worker. ). Oh interesting! That would make sense as to why the individual purses are typically so high. For example, if a bettor had $10,000 in sports betting winnings in 2021, and $8,000 in losses, he could deduct. 4. "If you're an employee of a trucking company and receive a W-2 at the end of the year, unfortunately, none of your job-related expenses are tax-deductible. For the Reason Code select "H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2. ), and receipts for. )1099 Compared to W2: Summary. 65% for your employer. It shouldn’t be a preference one way or the other, W2 is the correct way for a nanny to be paid per the IRS. Each type is used to report a different kind of payment or transaction, including income earned as an independent contractor. That means giving instruction and providing the tools, training, and equipment to complete the work. 2% better off with the W-2. Another way to calculate this is: You will pay more taxes as a 1099 worker because you pay both the employer and employee portions of payroll taxes, including Social Security and Medicare. So it is pretty clear that the 1099 is the better opportunity in terms of pay. It really depends on how the stay bonus was handled by the original company. 1099-MISC: Miscellaneous – This form must be filed for any independent contractor that has several clients, or has been paid over $600 for work. Collect all tax documents including year end paystub, W2, duty days, 1099s. Understanding what a 1099 commission-based. Similarly, if you paid independent contractors in 2022, you must provide Form 1099-NEC to the payee and to the IRS by January 31, 2023. 9 million for the 2013-14 season. Yes, you will pay more in taxes if you choose 1099. Although deductible on Schedule A of the federal return, these taxes don’t often show up on the player’s W-2. You fill out a W-2 for any worker who. HOW TO WORK WITH ME📞Book a Professional Tax Strategy Consultation: PROGRAMS🤑 Learn The Same Strategies The Rich Us. You do not pay any Social Security tax on your self-employment income if you already earn wages in excess of the wage base limit. Really? — Wisdom for Women (@wisdomforwomen) February 5, 2017 Uncle Sam might not ask for anything more than a W-2 from Americans who only work for one company, but pro athletes rarely have that luxury. The summary data contains information processed by the IRS during the 2012-2019 calendar years; this generally consists of filings for the 2011-2018 fiscal years, but may include older records. You should only get a 1099 if you profited over the normal $600 figure. If any taxes on your winnings have already been withheld, make sure to report that on the 1099 or W2-G. Choose how you want to file taxes, and what you choose will depend on the process. With this method, you keep track of how many miles you actually drive for work. A W-2 employee receives a salary and benefits, has taxes withheld from their paycheck, they generally work in the place you provide for them, and their work is related to the core of. Gain a Competitive Edge by Better Leveraging the Freelance Revolution. A tax provision that came into effect last year deprives professional athletes and entertainers working as W-2 employees (as opposed to self-employed individuals filing a Schedule K-1 or Form 1099. Mayweather takes the prize as the highest-earning athlete in 2015, grossing some $300 million, but he'll probably be the biggest taxpayer, as well. Bookmark Icon. It really depends on how the stay bonus was handled by the original company. Make sure it's actually $50 EXTRA and not just the $50k which would be withheld from your W2 paycheck, but in a 1099 situation you have to set aside yourself for taxes quarterly. Any advice is appreciated. Let’s take a look at Naomi’s results. Get paid. 625 from July to December. : Players Inc. A government worker. Form. This website uses cookies to give you the best experience and personalized service. Select "Employee compensation that was not reported on a W-2. The W2 vs. You do still pay MediCare tax though. . Form 1099-MISC from irs. NFL NBA Megan Anderson Atlanta Hawks Los Angeles Lakers Boston Celtics Arsenal F. To print or view your 1099-MISC income tax statement, visit myPFD. If you can only work exclusively on the church property (choir rehearsals, services) If you can quit anytime you want without any liability. The nature of the working relationship. Teams in the NFL, NBA, and NHL pay their players as employees. Christian Petersen/Getty Images NFL player Josh Martin’s taxes this year should be a lot less complicated than they were last. Employee Benefits. Consider the tax write-offs you can take. Since leaving the employer, I've yet to receive either a W-2 or a 1099-NEC. Is he: a. Get a flat? They'll bill you for it for example. @Mansfield's answer agrees what with I know about NHL paychecks - 13 paychecks, paid biweekly during the season. Royalty checks are paid in September or October, and are reported to the player on Form 1099. Rellenar la forma 1099-MISC es mucho más sencillo que llenar el formulario W-2, porque no tienen que. A 1099 employee is technically not an employee but is considered an independent contractor by the IRS. Best. The W-2 reports your gross wages and federal and state income tax withholding from your job. If you get a file titled “null” after you click the 1099-G button, click on that file. The whole nine yards. Part of your social security and Medicare taxes will be covered by your employer. If you never got one, contact your sportsbook or casino. 65% for you and 7. Pretty much all barbers are given 1099s. Your employer pays for malpractice and the employer part of income taxes. With these 30 athletes isolated, GOBankingRates then used our in-house federal and state income tax calculators to find each athlete’s: (2) federal. On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. W2 employee so you can keep your business in the clear. The self-employed pay twice as much Social Security and Medicare (FICA) taxes, because employers normally pay half. , self-employed) receive a 1099 from. 1099 has all the benefit to the employer and non to the "employee" They get to skip out on all sorts of insurance, taxes, and benefits. Here are a few of the advantages you'll have as a 1099 contractor: You get to deduct 1/2 of your self-employment tax. After a federal tax rate of 37% has been taken out, Nfl Football Players could expect to have a take-home pay of $726,525/year, with each paycheck equaling approximately $30,272 *. So if they offer you the same nominal rate of pay, you're 6. If you take home a net profit exceeds $600 for the year playing on websites such as DraftKings. Fantasy sports organizers must figure out players' net profits in order to determine who gets 1099 forms. If you take home a net profit exceeds $600 for the year playing on websites such as DraftKings. Therefore, you are in charge of finding your own insurance coverage and other benefits without the safety net of your company’s support. 1. A well-run organization understands where to best leverage a W2 employee and when it makes business sense to invest in a 1099 contractor. Harvey Bezozi | May 24, 2018 In a recent article, I examined some of the potential impacts of the Tax Cuts and Jobs Act of 2017 on professional sports teams and team owners. 1099-DIV: Dividends and Distributions – This form is for individuals that own a stock or mutual fund. C. We will issue a W-2G form each time a player has a payout of $600 or more (no reduction for the wagered amount) and a return that is 300X the amount wagered. Have done so most of the time in my case. ), and receipts for. S. Methodology: For this piece GOBankingRates first sourced the top 10 highest paid players in the NFL, NBA, and MLB and sourced each player’s (1) current or upcoming seasons salary. You don’t get paid when you don’t work — time off is unpaid. I received a W2 from my employer for my normal salary. In the chart below, you can see the major aspects that sets 1099 workers a part from W-2 employees: 1099 Workers. entity that is generally created by entertainment professionals. We calculated the federal, state and local taxes for the two highest-paid players on every NFL team. Yes, it means that. Our analysis also incorporated taxes paid to the states and cities of away-game opponents, as well as applicable deductions, credits and exemptions. NFL Players Inc. If you compare 1099 vs. Reporting Income. From the Unemployment Insurance Benefits Online page (below), under the “Get your NYS 1099-G” section, select the year you want in the NYS 1099-G drop-down menu (box with an arrow), and then select the “Get Your NYS 1099-G” button. For a W2 employee, the employer controls every aspect of their day-to-day job. This of course means that I'm responsible for self-employment taxes, which is an awfully big number. It would be pretty tough to get a 49% raise, so this seems like a good move to me! Of course, that was assuming the billable rate was $100/hour. What is the deadline for filing W-2s and 1099s? You must provide employees with their W-2 forms and file them with the IRS no later than January 31, 2023, whether filing by paper or electronically. In basic terms, 1099 contractors are self-employed, and you as the employer have no say over how the contractor works and are not responsible for withholding taxes. You're always responsible for 100% of your income taxes, whether you're a W2 employee or a 1099 independent contractor. To use this system, you must be able to. Where 1099 forms differ from W-2 forms is in tax withholdings. Prior to tax reform, you could deduct unreimbursed work-related expenses subject to a 2% threshold as an employee, but Congress discontinued this for. When you start working for someone you either give them a W4 (employee) or a W9 (contractor/vendor) to indicate your tax information. Income taxes based on where players like Justin Jones play each week, NFL team W-2s that may miscalculate duty days and now a change to the pay schedule means players probably pay too much in taxes. S. Key Takeaways. Click on “ Document. Think of it like your weekly paycheck. If you are a 1099 contractor, you are responsible for paying both. The Difference Between a 1099 and W-2 Employee. The W2 reported amounts are the back pay portion and include the appropriate amount of tax withholding. C. Instead of the W-2 tax form internal employees receive, contractors and freelancers receive a 1099-NEC statement that reports only their income. As an employee, you receive a W2 at the end of the year, you’re paid on a regular payroll, and taxes are taken out of that. Taxes. Um formulário 1099 é fornecido por um pagador a um empreiteiro ou autônomo, relatando a renda obtida com. About This Data. Online: You can e-file your 1099-NEC Form with the IRS through the Information Returns Intake System (IRIS) Taxpayer Portal. Whether you need to issue Forms W-2 for employees and/or Form 1099-MISC for contractors, these tax forms have to accurately represent the payroll that was issued for the year. under the terms of an agreed-upon “statement of work” for an independent contractor). iconoclast63 • Retired Dealership Finance Director • 9 mo. June 4, 2019 5:59 PM. com. So checking with this group, if you have any pros/cons in going with W2 vs 1099. By using this site, you agree to our use of cookies. The minimum salary was. For the latter, the two most common forms used are 1099-NEC. Sorted by: 2. If you’re motivated and able to create your own personal structure, the freedom of working. Mail: If you prefer to file your 1099-NEC Form by paper, you can. Training, managing, and motivating your employees can be an ongoing necessity, and terminating a W-2 employee can be more complex than a 1099 contractor. Management says what method to. A 1099 and a W2 are akin in that they are both end of year forms indicating monies paid for the year to either a contractor (1099) or an employee (W2). The NFL currently maintains an outstanding 401(k) plan for its players as well as provides an additional pension plan for retirement. I know that brokers do their own thing in terms of W-2 or 1099, but some states have specific laws regarding this issue. Expert Alumni. As a 1099 making 200k a year, you’ll be able to. Cons of being a 1099 contractor. Even if you are not self-employed or own a small business, you can still get a Form 1099-K. Fantasy sports players who win more than $600 generally get a Form 1099-MISC, or 1099-K, depending on how the money is paid out. This is only seasonal, about 3 months out of the year, but they can make upwards of $600-$800 per day if they install enough. Therefore, you are in charge of finding your own insurance coverage and other benefits without the safety net of your company’s support. Quarterly taxes HURT. W-2 employees receive benefits like paid training, health care (usually for full-time employees only), sick/vacation pay, and are reimbursed for expenses. As an independent contractor, you receive a 1099. If you receive multiple W-2G. Employers use 1099s and W-2s to record earnings and deductions for various workers. Form W-2 vs. Our analysis also. Form 1099-K shows the value of the transactions the PSE has processed for you in the past year. 65% of your Medicare and Social Security taxes and you pay 7. Mail: If you prefer to file your 1099-NEC Form by paper, you can. You would compare the W2 numbers ($65000 , $73,164) and the 1099 numbers ($6930, $78000). As an independent contractor, you receive a 1099. When you do that, you will need to report some of the 1099 income as W-2 wages paid out from the LLC to you. ago. TIN Matching will help taxpayers perfect their payee data before filing Form (s) 1099 with the Internal Revenue Service (IRS) and Form (s) W-2 with the Social Security Administration (SSA). So really you need to make up that 7. Is the W-2 job $400K a year plus benefits or is are the benefits included in the $400K and, it's a $400K package with a take home salary of like $250K Either way $400K a year either W-2 or 1099, I would think is a pretty solid salary for these times. maintains the licensing contracts for. If you work and recieve the same pay every week and get paid every two weeks (regular pay period) If you can fire me anytime you want. The only difference is that as a W2 employee, your employer withholds some money out of each of your paychecks and sends it to the IRS on your behalf, and as a 1099 there's no employer withholding so you have to send estimated quarterly. Form W-9 is used to gather information about a contractor (like name, address, and Tax ID/SS number) so their earnings can be reported at year-end. When a taxpayer files both a Form W-2 and Form 1099-MISC for a worker for the same year, and payments reported on each information return were made during the same period of time, the taxpayer may argue that the worker was performing two separate and distinct services – one as an employee and one as an independent. These include: booking fees for recording studios. e. 49%. There is one key difference between a W-2 form and 1099. W-2 employees typically do this via withholding; 1099 contractors do this via quarterly payments of estimated tax. Pros and Cons of W2. 1099: Everything you need to know Brynne Conroy Alana Rudder Alana Rudder Verified by an expert “Verified by an expert” means that this article has. Self-Employment Tax. Television. ago. 1099-MISC is Reportable Accumulative Promotional Winnings of $600 or moreDefinition and Examples of Form 1099. And I would rather never do this again, unless the pay was really that great. Benefits: As a contractor, you won’t get employee benefits like healthcare, retirement savings accounts, and employee discounts. Most employers pay 1099-NEC contractors a predetermined amount based on. NFL NBA Megan Anderson Atlanta Hawks Los Angeles Lakers Boston Celtics Arsenal F. Self-employed folks will typically pay all 15. No, form 1099-R and form W-2 are not the same--they report different types of income. 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 loo. Everywhere I've ever heard about is a W2 job and then, in some cases, a 1099 that comes from the manufacturer. ; Form 1099R reports. According to the IRS, the following trigger an automatic reporting on a W-2G: * A keno win of $1500 or more; * A slot machine, video poker, or bingo win of $1200 or more (if you ever see a machine with an $1199 payout, now you know why); * A poker tournament win (after subtracting the buy-in) of $5000 or more; * Any bet with. So really you need to make up that 7. Step #9. 1099 vs w2 Truck Drivers? W2 or 1099 Truck Driver? 1099 vs w2 employee? What's the difference? I share my thoughts in this video. Employees use this information to prepare their annual tax returns. About form 1099-K. A Form 1099 is issued to an independent contractor to report their income to the IRS. It is based on circumstances and facts of the matter. The company deducts half your Social Security and Medicare taxes and pays the other half if you are a W-2 employee. In Box 15, there might be a state abbreviation, such as IL for Illinois, and then the State ID Number for the company that issued the w2 or 1099. Form 1099-NEC for your driving services (included on Form 1099-MISC in years prior to 2020) Form 1099-MISC for other income you’re paid, such as bonuses or referral fees. You could take the job as a 1099 contractor, create an LLC, and then file Form 2553 to have the LLC files taxes as an S Corp. These can be bonus checks at the end of the year or all-star games or anything else the owners decide to give out. You must issue her a w-2. W2 pays a lot of the 1099 taxes. Before using Form 4852, get in touch with your employer or payer and request that they amend your Form W-2 or 1099-R if it needs to be updated. 4% goes to Social Security and 2. There is one key difference between a W-2 form and 1099. The tax preparer needs to have. Anyone with any information on this would be super helpful! Colorado itself allows 1099. Many employers refer to independent contractors as "1099" and employees as "W-2" workers after the IRS forms used for reporting purposes. Caesars Palace - W2G Automated Tax Form. By Brendan Coffey. I am an insurance agent in Michigan. Only thing with w2 is you don't have a cushion of getting unemployment if you are laid off, but. Standard mileage method. The maximum income tax rate in 2015 for single big earners is 39. Your 1099 paycheck should be A LOT bigger. Then, you multiply each mile by a standard amount set by the IRS. An employee (common-law employee) A statutory employee. And 1099 is simply a form that goes out at the end of the year.