IRS Logo
 
Print - Click this link to Print this page

Form 1099-MISC & Independent Contractors

Question: What is the difference between a Form W-2 and a Form 1099-MISC?

Answer:

Although both of these forms are called information returns, they serve different functions.

Employers use Form W-2 (.pdf), Wage and Tax Statement, to:

  • Report wages, tips and other compensation paid to an employee.
  • Report the employee's income and Social Security taxes withheld and other information.
  • Report wage and withholding information to the employee and the Social Security Administration. The Social Security Administration shares the information with the Internal Revenue Service.

Payers use Form 1099-MISC (.pdf), Miscellaneous Income, to:

  • Report payments made in the course of a trade or business to a person who is not an employee or to an unincorporated business.
  • Report payments of $10 or more in gross royalties or $600 or more in rents or compensation. Report payment information to the IRS and the person or business that received the payment.

Additional Information:


Category: Small Business, Self-Employed, Other Business
Subcategory: Form 1099-MISC & Independent Contractors

Please provide your feedback.

1. Was it easy to find your information within the above Frequently Asked Question?

2. How satisfied are you with the information provided within the above Frequently Asked Question?

3. If you still need help from the IRS, what would your next step be?




The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue NW
Washington, DC 20224