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DOR > En Español  > Señora Hinojosa Habla De Impuestos > Cual es la diferencia entre un empleado con 1099 y un empleado con W-2? > So, what is the difference between a 1099 employee and a W-2 employee? So, what is the difference between a 1099 employee and a W-2 employee?

Jan. 30, 2012

By now you should just about have all the paperwork you need to file your tax return. If your employer hasn’t sent your W-2 or 1099 yet, they only have until Tuesday, January 31 to do so. If you don’t receive your 1099 or your W-2 by then, you should contact your employer to request replacement W-2s or 1099s. It is free to have a copy of your information sent to you if you haven’t received it by January 31.

If you still don’t receive your paperwork, you can call the IRS and they will help to speed the process along. You can call the IRS at 1-800-829-1040. Have a paystub ready when you call, because the IRS may need your employer’s name, address and employer ID number.

So, what is the difference between a 1099 employee and a W-2 employee?

Most people get a W-2. It means you are employed directly by your company. You are either paid hourly or earn a salary. Your employer withholds taxes – things like federal income tax, state income tax, Social Security and Medicare from you check automatically based on the deductions you claimed. In general, your employer is providing you with the office space and equipment you need to do your job.

If you’re a 1099 employee, you are truly an independent contractor. You might be a commission based salesperson or be self employed, but you probably are responsible for what you do every day. Chances are you have many different clients who pay you for your work. Nothing is withheld from your paycheck, so you are responsible for paying your state and federal income taxes, your Medicare, Social Security and all other applicable taxes yourself.

Whether you receive a 1099 or a W-2, it’s just about time to start filing. The department will still be accepting paper returns, but look into doing your taxes electronically if you can. Electronic filing is faster, easier and more accurate. Plus, if you’re due a refund, an electronic filing means you might have it in as little as 10 days.

Check out www.freefile.dor.in.gov to find out if you qualify for free electronic filing.

To return to Señora Hinojosa’s tax blog, click here.

If you have any suggestions for this blog, please e-mail those suggestions to Señora Hinojosa at feedback@dor.in.gov

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