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1099 vs W-2 employment

The difference between 1099 and w-2. W-2 Income is income that is being taxed. This means if you get $300 in a week you will get less by the employer taking out taxes for you to pay the IRS. The employer also pays taxes on your behalf for you as an employee. This means your income would not be $300 after taxes It would be less. 1099 is an independent contractor. You would be paid $300 and keep $300 and have to pay taxes later depending on how much you made in total. This means the employer is not paying taxes on your behalf and nothing will be taken out of your check. This is important to know because with 1099 you can do write offs with lesson the amount of taxes one owes. W-2 does not allow one to write items off to lesson their tax amount.


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