💼 Employee or Independent Contractor?

One of the most important decisions you'll make as a business owner is determining whether someone should be a W-2 employee or a 1099 independent contractor.

Independent Contractors (1099):

✅ Control how they do their work

✅ Usually work with multiple clients

✅ Pay their own taxes

Employees (W-2):

✅ Work under your direction

✅ Follow your schedule and processes

✅ Receive wages through payroll, with taxes withheld by the employer

Why does this matter?

Misclassifying workers can lead to payroll tax issues, penalties, and compliance problems. Getting it right from the start protects both your business and your workers.

📚 This month's focus inside the DBR Bookkeeping community is Payroll & Independent Contractors.

We'll be covering: