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W-2 vs 1099: Understanding the Difference for EmployersLearn the key differences between employees and independent contractors, understand common reporting requirements, and prepare for tax season with confidence.One of the most common questions business owners face is whether a worker should be classified as a W-2 employee or a 1099 independent contractor. Understanding the difference is important because it affects payroll processing, tax reporting, recordkeeping, and year-end tax form require …