Việc làmCâu 968 / 1605

At year-end, how does a business report compensation to (1) an employee versus (2) a properly classified independent contractor?

a.Neither receives any form
b.Both receive a 1099-NEC
c.The employee receives a W-2; the independent contractor receives a 1099-NEC (for $600 or more)
d.Both receive a W-2

Giải thích

An employee's wages and withholdings are reported on Form W-2. A properly classified independent contractor paid $600 or more in a year receives Form 1099-NEC (nonemployee compensation) and handles their own taxes. Issuing a 1099 does not by itself make someone a contractor; classification still turns on the ABC/Borello tests, and misusing 1099s to disguise employees is a common misclassification red flag.

Trích dẫn luật: Form W-2 and Form 1099-NEC

Luyện miễn phí toàn bộ 1605 câu hỏi — không cần đăng ký.

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