Independent contractors use a 1099 form, and employees use a W2 For W2 employees, all payroll taxes are deducted automatically from the paycheck and paid to the government by the employer Contractors are responsible for paying their own payroll taxes and submitting them to the government on a quarterly basisIRS 1099MISC Form – To be filed by the payor of an independent contractor of any individual that was paid more than $10 in royalties, $600 in payments, or $5,000 of a buyer for resale Contractor Work Order – An outlined request that is made prior to a job being assigned that gives a quote of the costs attributed to the labor and materials associated with the workThe driver is only considered an independent contractor if they meet a twopart test A driver is an independent contractor if the alleged employer is required to report payment for their services on a federal income tax form 1099 (if required by law), and ALL three of the following criteria are met
1099 Forms Everything Businesses Contractors Must Know To Be Stress Free About Taxes