W-2 vs 1099 is it really that big a deal?

If you call them “Employees” they are not “contractors” and the difference can cost you a great deal. I explained this to an employer that has the term used in this manner in an employee announcement “If you are a full time employee you will be offered employee benefits, if you are a 1099 employee you will not be offered those benefits as you are not eligible.” That document can be used in an audit to demonstrate that in fact you consider those people you’re employees. Continue reading

1099 Provision, Retiree Reinsurance, Free Choice Voucher Updates


1099 Reporting Requirement Repealed

Health care reform required that business owners, starting in 2012, file a 1099 form for all vendors from which they buy $600 worth of goods or services within a year.  On April 5, the Senate voted to repeal the provision and the House passed the measure in March.  The White House announced on April 15, 2011 that… Continue reading