Dave's ESL Cafe's Student Discussion Forums

[xpeng]

i got a letter from a job hunter agent,the following words in his letter is
"WE PREFER PEOPLE TO COME ON OUR W-2 FOR PROJECTS.

W-2 and 1099 will also be fine."


what does "
"W-2 and 1099 " mean

[CP]

In the U.S.A., we pay taxes on our income, as people do in other countries. The taxes are collected by the employer and paid into the federal government, except where they are paid directly by the employee.

When an employer hires someone, the employee fills out form W-4 to inform the employer of his or her tax status, and the employer withholds the appropriate amount from the paycheck and sends it to the government. At the end of the year, the employer reports to both the government and the employee how much was withheld by sending form W-2 to the employee, the state, and the federal government.

However, for some kinds of work, the employer can hire an independent contractor rather than an employee. The contractor is then responsible to send in his own quarterly reports and estimated taxes to the state and the federal government, and the employer reports to the government and to the independent contractor the total paid in compensation with form 1099.

So W-2 is shorthand for an ordinary employee, while 1099 is shorthand for independent contractor.
_________________
You live a new life for every new language you speak. -Czech proverb