1099 vs W2: How Should You Pay Your Employees?

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  • เผยแพร่เมื่อ 1 ก.พ. 2025

ความคิดเห็น • 80

  • @LYFEAccounting
    @LYFEAccounting  3 ปีที่แล้ว +5

    UPDATE: Suggested video to watch next: "IRS Cracks Down on Employee vs Contractor Rules" th-cam.com/video/2jPt6sCXGZA/w-d-xo.html

  • @AlisonErasmus-t9e
    @AlisonErasmus-t9e ปีที่แล้ว +2

    the pace of your speech, power point outline of key points and the simplicity of your explanation is fantastic.

  • @zachwillason
    @zachwillason 10 หลายเดือนก่อน +5

    What about from the employee perspective? Can you break this down for them, for their benefit?

  • @karenoliver1334
    @karenoliver1334 2 ปีที่แล้ว +1

    I love how detailed this video. Its an enlightenment. Thank you

  • @prt5881
    @prt5881 ปีที่แล้ว +5

    I would like to know what are the financial / tax pros and cons of me hiring a W2 vs contracting a 1099?

    • @scientist100
      @scientist100 หลายเดือนก่อน

      @@prt5881 1099 would be best in your scenario but mind you, you will pay premium prices and not what you'd normally pay a regular w2. So, in theory, all 1099 are contractors and they dictate their price, not you. You can always make suggestion based on what you have as far as the job insurance. Let's say you have a job that will take 1 month. That's assured job for the contractor. Then he will come up with his estimate and it's no longer an hourly but a contract. With w2, you have other expenses to worry about such as paying hald of their taxes, workers comp, insurance, etc on top of their regular pay.

  • @scientist100
    @scientist100 3 ปีที่แล้ว +5

    Sceneario:
    1. Be at the work site from 9am to 6pm - 5 days a week.
    2. No overtime if over 40 hours per week.
    3. No paid PTO.
    4. Clock in using ADP & get paid hourly.
    Is this a W2 or 1099-NEC?
    Did I mention no paid holidays?

    • @MaruskaStarshaya
      @MaruskaStarshaya 2 ปีที่แล้ว +15

      it's a scammed w2 employee 😁

    • @pattylamorena8111
      @pattylamorena8111 ปีที่แล้ว +6

      What a terrible company to work for

    • @nakisha360
      @nakisha360 หลายเดือนก่อน

      Great question. This is how most CNA’s and Direct Care workers are scheduled and paid when they work. Would also like to know if this is considered 1099 or W2 worker?

  • @superstarvonhouston1
    @superstarvonhouston1 3 ปีที่แล้ว +1

    I support you bro 💪🏽

    • @LYFEAccounting
      @LYFEAccounting  3 ปีที่แล้ว +1

      Its appreciated! Thanks for supporting.

  • @ThermalSolutionsHVACR
    @ThermalSolutionsHVACR ปีที่แล้ว +1

    All the contracting companies I worked for payed me as a independent contractor.. when in reality I was sn EMPLOYEE.. now as a business owner, I will do the same, of course,in attempt to keep overhead at minimun as possible

    • @ThermalSolutionsHVACR
      @ThermalSolutionsHVACR ปีที่แล้ว +1

      I believe workman comp alone is around 80$ a month.. depending on the insurance, but that's around the price

    • @aguibousangare9299
      @aguibousangare9299 ปีที่แล้ว +1

      Do you know which insurance is good?

    • @ThermalSolutionsHVACR
      @ThermalSolutionsHVACR ปีที่แล้ว

      ​@@aguibousangare9299for workman's comp? Or work insurance ?

    • @Dvegastyle
      @Dvegastyle 9 หลายเดือนก่อน

      What they did doesn’t mean they did it right. They just get lucky until get caught. The same waits for you now

  • @user-sl3bx6gj3
    @user-sl3bx6gj3 ปีที่แล้ว +1

    incredibly helpful. well done, sir.

  • @DougWalton
    @DougWalton 8 หลายเดือนก่อน

    Great video. Informative and entertaining.

  • @KGs_Place
    @KGs_Place 2 ปีที่แล้ว +2

    Very informative and the presentation was excellent! Thank you.

  • @princessp1361
    @princessp1361 ปีที่แล้ว

    Yes I love to educate myself ❤ great video

  • @santaniebrown3721
    @santaniebrown3721 2 ปีที่แล้ว

    Half way in, excellent video!! 🙏👏

  • @MikeTXBerry
    @MikeTXBerry 8 หลายเดือนก่อน +2

    Video begins at 2:26. You're welcome

  • @scrappychildhood6633
    @scrappychildhood6633 2 ปีที่แล้ว +2

    Not all W-2 employee. Some Start off as W-2 and become there own boss eventually. AKA Transtion period.

  • @BarsUpEntertainment
    @BarsUpEntertainment 2 ปีที่แล้ว +5

    This video was really helpful! What about taxes for the employer? What’s the difference of each?

    • @walterstanford8162
      @walterstanford8162 ปีที่แล้ว

      1099 = Your own business W-2 is an actual company like subway or Walmart
      (But some companies use a 1099 tax form as well which makes it even more complicated and confusing).

  • @galaxyabstractancestraltri7046
    @galaxyabstractancestraltri7046 2 ปีที่แล้ว +1

    Thank you so much 💓 I love learning from you

  • @Bossstyles
    @Bossstyles 4 ปีที่แล้ว +2

    Great advice man. Thanks!

  • @lorettaasata5940
    @lorettaasata5940 3 ปีที่แล้ว +1

    Amazing and great examples. Thanks so much.

  • @indahood3991
    @indahood3991 4 ปีที่แล้ว +4

    Love the videos man! Question, I’m going to start a service based business in auto detailing. Would 1099 be the best way to go about it? Then as business grows translation into w2

    • @scientist100
      @scientist100 ปีที่แล้ว

      1099 and expect charges to be triple from normal hourly or more.

  • @music7774life
    @music7774life ปีที่แล้ว

    1. Do you have to have a license to qualify as a 1099?
    2. Do employers have to have workman's comp for 1099 independent contractors?
    3. Is 1099 considered employee or independent contractor?
    4. How to Hire a 1099 independent contractor ? Documents needed and a list of process?
    5. Can the 1099 IC work in the same building as the employer ?
    (California Laws)
    (Trade: Warehouse work and Manufacturing)

  • @ephriam-house
    @ephriam-house ปีที่แล้ว

    This was extremely helpful. Question, who did your video editing????

  • @slimjimmichael
    @slimjimmichael 10 หลายเดือนก่อน +1

    Can an independent contractor sue you if they get hurt on the job? Cleaning stuff ect.
    I know that us what workman's comp is for.

  • @PatrickDcoldest
    @PatrickDcoldest ปีที่แล้ว

    Quick question! I have a trucking company, I own the truck and trailer but my driver drives on his time and it’s flexible. All he does is car hauling so I want to die a independent contractor plus he has his own LLC I pay his check to

  • @Cantrell5051
    @Cantrell5051 2 ปีที่แล้ว

    Great video! Thanks man!!

  • @smoovaatl
    @smoovaatl 2 ปีที่แล้ว +4

    I’m self employed personal trainer so I’m the owner and the worker but I want taxes taken out like a regular worker so I don’t have to deal with it at the end of the year! What are my options?

    • @MaruskaStarshaya
      @MaruskaStarshaya 2 ปีที่แล้ว

      Duh, hire an accountant

    • @Grant849
      @Grant849 ปีที่แล้ว +1

      Make quarterly estimated tax payments to the IRS

  • @davidlopez-rl4sh
    @davidlopez-rl4sh 7 วันที่ผ่านมา

    So eventually both is the correct answer?

  • @Steelersgurl
    @Steelersgurl 2 ปีที่แล้ว +3

    if we use w-2 ...do you really have to pay for health insurance for your employees? if its a small business?

    • @MaruskaStarshaya
      @MaruskaStarshaya 2 ปีที่แล้ว

      depends on the laws

    • @Grant849
      @Grant849 ปีที่แล้ว

      No, need over 50 employees

  • @karim-Merahi
    @karim-Merahi 2 ปีที่แล้ว

    Good Video, Nice Advices

  • @1lesliebrennan
    @1lesliebrennan ปีที่แล้ว

    Good video what's the music in the intro?

  • @DrJulieReyes
    @DrJulieReyes 7 หลายเดือนก่อน

    Great video

  • @scrappychildhood6633
    @scrappychildhood6633 2 ปีที่แล้ว +2

    I am colored person, mentally challanged like 1099 because I get 9600 tax deducation and 15k tax credit for transporation cost(uber,lyft,ECT)

  • @music7774life
    @music7774life ปีที่แล้ว

    Do you have to provide workman's comp for 1099 employee

  • @itsdetroitjai
    @itsdetroitjai 3 ปีที่แล้ว +13

    It was the W2 joke for me. 🤦🏽‍♀️😂

  • @aligregi9106
    @aligregi9106 ปีที่แล้ว

    what would you say about hirering a pool guy for 2 days a week?

  • @shawnfrancis2459
    @shawnfrancis2459 2 ปีที่แล้ว +2

    52/hr on W2 or 55/hr on 1099. which is better and how?

    • @scientist100
      @scientist100 ปีที่แล้ว +1

      Usually for 1099 all you do is pay one flat fee and you're off the hook. No different than paying a third party company to do work for you and charge you for it. W2, you usually pay 6% of the employee taxes, insurance and additional payroll fees.

    • @mikeguyton7252
      @mikeguyton7252 ปีที่แล้ว +1

      You will get paid the exact amount your owed with a W-2 everytime. With a 1099 so many things can switch up on payday. Sometimes you might not get paid at all working a 1099.

  • @ASKQUESTIONLATERS
    @ASKQUESTIONLATERS ปีที่แล้ว

    The company that I got hired with they want me to fill out a w9 tax form . I’m not the owner of the company . I just work a hourly

  • @SP-Demos
    @SP-Demos 2 ปีที่แล้ว

    awesome vid

  • @ghoetzinjal2660
    @ghoetzinjal2660 ปีที่แล้ว

    Is there a book where I can read about all this?

  • @justicek.foster2160
    @justicek.foster2160 2 ปีที่แล้ว

    loved it!

  • @joshais1654
    @joshais1654 2 ปีที่แล้ว

    Ok if a w2 worker don’t use nun of the benefits a employer offer can they switch over to the 1099 or W8-Ben

  • @robwilburn3088
    @robwilburn3088 2 ปีที่แล้ว +1

    as a current w2 contractor I would never work for anyone that did a C2C or 1099 it's the biggest con in the game...

    • @teikahunter6317
      @teikahunter6317 2 ปีที่แล้ว

      Can you explain a W2 contractor ?
      My situation there’s a small business who asked if they can sub contract for me but do not carry all the legal documents to do that in my state . They have a sole proprietor as well as a company but want to sub contract I would love to have them in my team but I’m kinda confused on how this all works

  • @syebethel
    @syebethel ปีที่แล้ว

    Hourly or sourly? Weekly or very weakly? 😅😅

  • @lcmlcm2460
    @lcmlcm2460 3 ปีที่แล้ว +1

    Good video

    • @LYFEAccounting
      @LYFEAccounting  3 ปีที่แล้ว +1

      Glad you enjoyed it. Which option are you leaning toward?

  • @repa2919
    @repa2919 2 ปีที่แล้ว

    thanks

  • @christinajones7319
    @christinajones7319 ปีที่แล้ว

    Ty

  • @matalebtube4900
    @matalebtube4900 3 ปีที่แล้ว

    I have a company and I have foreign employees and I pay them per month $3000 in total, just wanted to know if there was a way for me to use it in Tax deduction? please help

    • @Bobthrbuilder111
      @Bobthrbuilder111 3 ปีที่แล้ว +1

      Get them a working visa

    • @matalebtube4900
      @matalebtube4900 3 ปีที่แล้ว

      @@Bobthrbuilder111 I don't think they will issue any, They are from Afghanistan.

    • @Romandaud
      @Romandaud 2 ปีที่แล้ว

      @@matalebtube4900 what kind of jobs they are doing for you

  • @sustanciagaming5973
    @sustanciagaming5973 2 ปีที่แล้ว

    So basically theres no benefit to having W2 employees. Only higher expenses.

    • @LYFEAccounting
      @LYFEAccounting  2 ปีที่แล้ว

      I wouldn’t say that, when you have a W2 employee they work according to your standards and schedules

    • @pattylamorena8111
      @pattylamorena8111 ปีที่แล้ว

      That's what I got from everything lol

  • @stahaz1
    @stahaz1 ปีที่แล้ว

    Spelling..."determining"

  • @kingreyes7917
    @kingreyes7917 2 ปีที่แล้ว +2

    Rich vs poor mindset 🤓

  • @kokallan
    @kokallan 2 ปีที่แล้ว +4

    Get to the point already!

    • @uzomad
      @uzomad 11 หลายเดือนก่อน

      They never do. Just word soup…