The amount of control the employer has over the worker determines whether the worker is an employee or an independent contractor
| Employee | Independent Contractor |
|---|---|
| The employer controls what work must be done and how. | Self-employed workers control how the work gets done. |
| The employer supplies the tools to complete the work. | Self-employed workers usually provide their own tools. |
| The worker is an employee who works, usually exclusively, for the employer. | The worker is self-employed and has an independent business serving multiple clients. |
| Employers pay employment taxes on an employee's behalf. | Self-employed workers pay their own employment taxes. |
|
At year-end, employees receive a W-2 form. As part of your Intuit Full Service Payroll, we prepare employee W-2 forms, file them with the government agencies, and mail them directly to your employees at year end. |
At year-end, self-employed workers receive a 1099, unless they are incorporated. As part of your Intuit Full Service Payroll, we prepare contractor 1099 forms, file them with the government agencies, and mail them directly to your contractors at year end. |
Still not sure? See Is your worker a 1099 contractor or a W-2 employee?
See IRS Publication 15, Circular E: Employer's Tax Guide for more info.