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