As An Employer Withholding Payroll Taxes, Do I Need to Issue W-2 Forms to My Employees?

Yes, employers who withhold payroll taxes issue Form W-2 to employees. Now, the IRS has introduced the Form 1099-NEC just for reporting independent contractor income (officially known as “non-employee compensation”). So if you work with contractors and your business paid those contractors more than $600 each in a tax year, you’re required to file Form 1099-NEC.

Read FAQs on Business Taxes – Read FAQs on Personal Taxes.