Hi friends,I wish to know the difference between W-2 and 1099 in US Payroll. I know, in W-2, company pay the taxes and 1099, employee need to pay the taxes. I am interested to know more than this. Can anyone explain me this.........Thanks in advance,Sai

Interview Candidate
Oct 31st, 2006
2
1698

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tej

Nov 21st, 2006

Hi Sai,
You are right this is only the major difference, on w2 you are company employee so company take care of all your Social Secuity,Medicare and benifits,which runs around 30 to 33% to the company on your gross Pay.
With 1099 you are independent contractor for the company. They pay you the salary on form no 1099 and you have to take care of all the taxes and benfits(in this case no benfits).