At year-end, an employer reports an employee's wages on which form, as opposed to the form used for an independent contractor?
Explanation
Wages, withholding and payroll taxes for an employee go on Form W-2; payments for services to a non-employee go on Form 1099-NEC, and for tax year 2026 the reporting threshold is $2,000 paid to the payee - the old $600 figure is out of date. (b) is the error in the safe direction and is rarely the one a contractor makes. The dangerous version is the reverse: issuing a 1099-NEC to someone who is an employee under Labor Code §2775, which is documentary evidence of the misclassification rather than a defense to it. (a) is the state new-hire report, filed at hire rather than at year-end. (d) is the work-authorization form, which is retained by the employer and filed with no one.
Law Reference: 26 U.S.C. §6051 (Form W-2); §6041A and 2026 instructions (Form 1099-NEC)This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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