Quality benefits attract and retain high performers as well as increase morale. 1099 workers, on the other hand, are usually paid on a project or task basis, with payment. If you are a 1099 contractor, you are responsible for paying both. Income : 1M. Social Security Tax (FICA): Social Security tax is withheld at a rate of 6. I've been reading up on the…If you are on a 1099, you have to pay self-employment tax, while on a W-2 you do not. There are many different tax forms that the Internal Revenue Service (IRS) has for the purpose of filing taxes. When the page loads, you will notice several account-related items. Key Takeaways. They will get a W-2 in January. Taxpayers are required to report all sources of income on their. 1099 contractors receive a 1099 form from each client who paid them more than $600 during the year. According to USA Today, player paychecks are distributed weekly during the season: Players are paid their season salary in 17 installments during the regular season. It shouldn’t be a preference one way or the other, W2 is the correct way for a nanny to be paid per the IRS. And I would rather never do this again, unless the pay was really that great. Note: Prior to tax year 2020, this information was reported on Form 1099-MISC with Box 7 checked. If you’re motivated and able to create your own personal structure, the freedom of working. You can file W-2 forms online directly with the Social Security Administration through their Business Services Online portal. Our W-2/1099 software supports up to 1,999 payers and up to 99,999 recipients per payer. This is a two-way bargain, not categorically better or worse. Let’s discuss TIN Matching Frequently Asked Questions (FAQs) to understand more about the IRS TIN Matching Process and how it works. What is a 1099 nurse practitioner? If you are not self-employed and you don’t have your own practice, you are either working as an employee or an independent contractor. By using this site, you agree to our use of cookies. I asked for a w2, but they gave me a 1099 which forces me to pay all the 15% payroll taxes myself. Select "Employee compensation that was not reported on a W-2. Income taxes based on where players like Justin Jones play each week, NFL team W-2s that may miscalculate duty days and now a change to the pay schedule means players probably pay too much in taxes. You are an employee, not an independent contractor. Disadvantages of being a 1099 employee: Less job security: Unlike a W2 employee, a 1099 contractor is not guaranteed employment. We calculated the federal, state and local taxes for the two highest-paid players on every NFL team. W2G automated tax forms are available for members playing at the High Limit Slots in Caesars Palace. The IRS considers the 1099 form a type of “information return. • You’re required to report all of your gambling winnings as income on your tax return, even if you end up losing money overall. Here’s what you need to know. Income you receive from any sources other than an employer must be reported to the IRS after the end of the tax year, just like the income from your job. Are MLB players W2 or 1099? JOE GEIER: Major league players are employees with contracts and part of a union. As a freelancer, you're responsible for estimating your taxes and paying the self-employment tax in. Read on to learn more about why 1099 employment is not great for the best companies. If the pay from being a contractor (1099) minus the cost of health insurance, minus the X weeks of salary for vacation is noticeably greater than the pay from being an employee (w2), then do that. Rules for claiming dependents. But the practice can pay you the money it would have spent on those benefits as 1099 payments, and you can pay for them and deduct the costs yourself. 2%. The same goes for termination. The key distinction is that W-2 workers have taxes withheld from their paychecks, while 1099 workers do not. e. 3% -- a significant. On the other hand with 1099 you make your. W-2 forms must be received via mail or electronic filing on or before January 31 of the following year to the SSA. For the same income; and relatively low expenses, is it better to be on W2 or 1099. For most workers, a W-2 or 1099 is just a piece of paper they get at year-end to file their tax returns. For the Reason Code select "H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2. maintains the licensing contracts for. W-2 employee is the default classification for any worker you can’t classify as a 1099 contractor. Winnings From Online Sports Sites Are Taxable. Form W-2 reports earnings from employment, and taxes withheld from those earnings, to both an employee and to the IRS. A employee will submit a W-4 for the federal and state taxes. So if they offer you the same nominal rate of pay, you're 6. Philadelphia 76ers Premier League UFC. Form W-2 is a wage and tax statement you issue to employees. The difference between IRS Forms W-9 vs 1099 is that the former is given to contractors for the purpose of collecting personal information, while the latter is for reporting wages to the IRS. an employee and his works my employees. If you're W-2, you pay 6. A 1099 is designed for someone with autonomy over their hours and how they do their job. 2% better off with the W-2. Are NFL players w2 or 1099? maintains the licensing contracts for NFL trading cards, video games and selected other items. 1099’s can also deduct business expenses much more easily, and set up low cost. As a 1099 making 200k a year, you’ll be able to. $50 for each misclassified W-2 form. TIN Matching will help taxpayers perfect their payee data before filing Form (s) 1099 with the Internal Revenue Service (IRS) and Form (s) W-2 with the Social Security Administration (SSA). Small business taxes. Therefore, after your loss deductions are made, the remaining winnings will be taxed. Requirements and penalties. 65% of $52K in extra self employment taxes). More commitment. NFL players are considered employees under the FLSA. And while it may seem like a simple step, the classification options can be confusing. Cons of being a 1099 contractor. This is only seasonal, about 3 months out of the year, but they can make upwards of $600-$800 per day if they install enough. So if you're hurt while working, you get medical care as a W-2 but not as a 1099 contractor. If you are selected for a W-2 role, you may be. They tell you what time to report to work and when you can leave. @Mansfield's answer agrees what with I know about NHL paychecks - 13 paychecks, paid biweekly during the season. We calculated the federal, state and local taxes for the two highest-paid players on every NFL team. When you have logged in, click on your name in the top right and go to “My Account” from the drop-down options. W-2 income Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EIC) Child Tax Credit (CTC) Student loan interest deduction Situations not. Confirm all 1099 income from marketing/endorsement deals. Contribuyentes que no han recibido un Formulario W-2 o Formulario 1099 deben comunicarse con el empleador, el pagador o la agencia emisora y solicitar una copia del documento corregido o que falta. $5,000 or. W-2 employees sign an agreement for an extended period of time for ongoing employment, while 1099. The PGA Tour, however, considers its players to be independent contractors. Pros. 1099-INT reports interest income typically of $10 or more from your bank, credit union or other financial institution. Fantasy sports players who win more than $600 generally receive a Form 1099-MISC or 1099-K, depending on how the money is paid out. That provides all the salaries and compensation you receive and covers all the taxes. Management says what method to. RedSunFox • 8 mo. Los trabajadores W2 no deben calcular su pago de impuesto por trabajo, porque las retenciones corren por parte del patrono o empleador. Each type is used to report a different kind of payment or transaction, including income earned as an independent contractor. Use the images attached to help finish your entry. However, simply providing a worker a 1099 Form doesn't make them an independent contractor. A lender would send you a 1099-C if they canceled any remaining mortgage debt after the foreclosure. The 1099s were accepted and the W-2 rejected with the note to upload all W-2/1099s for [NAME] 2018 tax return. If any taxes on your winnings have already been withheld, make sure to report that on the 1099 or W2-G. 1099 as long as I’m getting at least 7. I understand that W2 is employed. Part of your social security and Medicare taxes will be covered by your employer. On top of that, employees typically need to work a standard 9-5 or 8-5 job, meaning they have less freedom in their day-to-day life. . There is one key difference between a W-2 form and 1099. The maximum income tax rate in 2015 for single big earners is 39. If you are considering growing your team, you may wonder if you should hire a W2 employee or a 1099 contractor. This is a 49% increase in compensation. W2 workers can confuse a lot. Bookmark Icon. I guess it’s similar to teachers, they sign contracts with their respective school district while also being a w2. Although deductible on Schedule A of the federal return, these taxes don’t often show up on the player’s W-2. A lot of 1099 drivers don’t know this, but CPA’s are tax deductible, and the removal of the travel food tax deduction for truckers applies only to W-2 drivers. The nature of the working relationship. (citizens or non-resident aliens) filing a Form W-9 and other business service providers not on the payroll (receiving Form W-2) should expect to receive Form 1099-NEC from each client exceeding the $600 or more reporting threshold. Which gives them more profit. 1099 Compared to W2: Summary. As a W2 employee, your employer pays 7. 1099: Employee differences . For a W2 employee, the employer controls every aspect of their day-to-day job. What information and copies does the W-2 require? Form W-2 has six copies: Copy A: employer sends to the Social Security Administration, or SSA; Copy B: employee files with the IRS for tax return purposesThe 1099 Form Used by CRE Players A 1099 form is used to report non-employment income and there are a total of 21 information returns or 1099 forms. You can contact the IRS at 800. : Players Inc. He will have workers that he is in 100% control of. Christian Petersen/Getty Images NFL player Josh Martin’s taxes this year should be a lot less complicated than they were last. Insist on 30% higher pay than comparable W2 employees to cover the taxes, lost benefits, and hassle. You don’t get paid when you don’t work — time off is unpaid. 1099-MISC: Miscellaneous – This form must be filed for any independent contractor that has several clients, or has been paid over $600 for work. 14 Replies VolvoGirl. Television. A 1099 is filled out by the business and then distributed to both the contractor and the IRS at the end of the year. Option #1: The simplest/longest route is a detailed response explaining the situation, the incorrectness of the 1099, the reaction from the issuer, and consider adding the "penalty of perjury" statemen to the response for your client to sign. 4. On the surface, an NFL player's tax status appears to be similar to that of the majority of individuals. The Ascent takes a closer look at this for employees and small business owners. You ARE either an employee or a contractor)The W9 is just information about you the player. As a 1099 in this scenario, you would make $52,393. When an individual performs services that are controlled by you, and you are the one. Where 1099 forms differ from W-2 forms is in tax withholdings. States have collected hundreds of millions in gaming taxes since the Supreme Court overturned the federal ban on sports betting a few years ago, and the IRS wants its fair share. About form 1099-NEC. Although the W-2 and 1099 forms are both information statements, the purposes they serve and the types of worker they represent are different. Similarly, are NFL players W-2 or 1099? Those additional hourly sum are paid after the end of that season. That means giving instruction and providing the tools, training, and equipment to complete the work. You would compare the W2 numbers ($65000 , $73,164) and the 1099 numbers ($6930, $78000). Reporting Taxes Withheld. Quality benefits attract and retain high performers as well as increase morale. If you win money betting on sports from sites like DraftKings, FanDuel, or Bovada, it is also taxable income. I made just over $6,000 in commission and I received a 1099-NEC for this additional income. splitting that cost 7. Even if part or all of your dividend was garnisheed, the entire. May 25, 2022 5:55am. ), and receipts for. ; In the Wages and Salaries section, click on the Start/Revisit box. One you do not. S. Many of these questions will also apply if you are thinking about working as a salaried employee for a consulting firm:Winnings From Online Sports Sites Are Taxable. 4. Here are some things a W2 employee can expect: Your employer will withhold federal and state (where applicable) income taxes and your portion of social security and Medicare taxes from each paycheck. Or W2 Employment: Why It Is Better Than 1099 For Company Drivers When it comes to hiring drivers, there are two main types of employment: 1099 and W2. The IRS Form W-2 is an employee’s Wage and Tax Statement. 1099-MISC is Reportable Accumulative Promotional Winnings of $600 or moreDefinition and Examples of Form 1099. As their employer, you have a say over how W2 employees do their work and can have an agreed-upon work. Why do I have to wait until January 15 to view my 1099-R or receive the numbers in it?FLSA requires that each employee receives a classification upon hiring. So really you need to make up that 7. Form W-9 is completed by the independent contractor and provides details on who they are. Each case must be examined independently to see if it is eligible for deduction. Gambling facilities are required to document your winnings with a Form W-2G under certain circumstances: $1,200 or more in winnings from bingo or slot machines. Form 4852 is a substitute for Form W-2 that taxpayers can complete if: They haven't received a W-2. Follow the prompts to access your 1099-R Form for the tax year that just ended. I do have statement showing tax and gross for it. As an employer, you have more control in your relationships with W-2 employees, including setting their work hours, schedule, and day-to-day tasks. The exceptions being Florida, Washington State, visiting players in Canada and DC, and Texas. Win Loss | MGM ResortsFinally, getting a Form 1099 may allow for more opportunities to claim an exclusion for physical injury or physical sickness damages. The next screen asks the source of the other earned income. You know exactly how much you will make in a given month, and (outside of some exceptions) can rely on your salary being consistent. The. Independent contractors receive 1099 forms rather than W-2s as a record of income earned. Wages, any bonuses, prizes, and awards paid to employees (report these on Form W-2). Reporting Taxes Withheld. The managing of being a 1099 is super simple, I use Quickbooks Self Employed and it does all the tax calculations for me and I know exactly what I owe FEDERALLY. Both types of forms are used when filing taxes. With a W-2 employee, you have the right to direct the work being performed. If you are unable to locate your CSA or CSF claim number, or you are not a retiree, former spouse of a retiree or a survivor of a retiree, or you are inquiring about the status of a refund application, please contact us onOver the years, I have accumulated a set of questions that I usually ask the placement firm about a contract or consulting position (W2 or 1099) that I am looking at taking. You will have less of a tax bill with the W-2 income. In contrast, NFL paycheck distribution is simpler. The next screen asks the source of the other earned income. You will also have to pay your own workers compensation insurance. You could take the job as a 1099 contractor, create an LLC, and then file Form 2553 to have the LLC files taxes as an S Corp. Most sportsbooks and casinos will begin withholding federal taxes from your winnings on payouts of $5,000 or more. They pay. The company deducts half your Social Security and Medicare taxes and pays the other half if you are a W-2 employee. Anyone with any information on this would be super helpful! Colorado itself allows 1099. Mail: If you prefer to file your 1099-NEC Form by paper, you can. As an independent contractor, you receive a 1099. . • You may receive a Form W-2G, Certain Gambling Winnings and have federal income taxes withheld from your prize by the gambling establishment if you have qualifying winnings. 6% on income over $413,200, amounting to tax due from Mayweather of about $120 million, barring any tax deductions he could claim. A government worker. Therefore, you are in charge of finding your own insurance coverage and other benefits without the safety net of your company’s support. Receive Your 1099: No later than January 31, 2023: No later than January 31, 2024: File Your Tax Return: Tuesday April 18, 2023 (15th is a Saturday; Monday is Washington, D. Depending on the amount of the dividend, your child’s dividend may be taxable. Employers generally have until January 31 to send employees W-2 forms for the previous tax year. Since it was a part of your employment, though, I think it most likely ought to be reported on Form W-2; better yet it might have been better handled if Employer B had paid you the bonus from. W2 Form from irs. According to the IRS, there may be times when a person works as both a self-employed and an employee for the same company. If any taxes on your winnings have already been withheld, make sure to report that on the 1099 or W2-G. Expert Alumni. 65% (i. C. W2 pays a lot of the 1099 taxes. Television. There is one key difference between a W-2 form and 1099. Companies must file a 1099 form if they spend over $600 on a contractor (wages. We will withhold federal income tax from the winnings if the winnings minus the wager exceed $5,000 and the winnings are at least 300 times the wager. Misclassification of employees as independent contractors can result in significant penalties. They use a formula to determine when a player hits the $600 level: Prizes won minus entry fees plus bonuses = net profit. Ensure all gifts exceeding the annual gift limit are disclosed. You will then pay only your employee share of social security and medicare taxes. Philadelphia 76ers Premier League UFC. A government worker. This is a hot topic, but I believe it is self reporting. File taxes with no income. 3%. Since you’re now self-employed, your income will be subject to the self-employment tax. It gives a comprehensive overview. NFL NBA Megan Anderson Atlanta Hawks Los Angeles Lakers Boston Celtics Arsenal F. Unless 1099 is paying a lot more w2 may be the way to go. You can't just wait to pay it all at tax time. And if you fail to. Form 1099-MISC is different from Form W-2, which reports salary or hourly wages. W2 vs W9 vs 1099 Contractors: Tax Rates. Click Continue. S. Only take a 1099 job if it pays 8% or more than a similar W-2 job, or you want a J2, J3, J4, or J5, and there are no other W-2 jobs available. If you can’t see anything in this section, this is likely because you did not reach the $600 winnings threshol d during the. Pretty much all barbers are given 1099s. rent for classroom or teaching space. Due to the uncertain nature of the period of stay. marketplaces meets or exceeds $600 in a calendar year per seller. Employers pay half, or 7. Form W-9 is used to gather information about a contractor (like name, address, and Tax ID/SS number) so their earnings can be reported at year-end. Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B. " Click Continue. There are several types of 1099 forms, but the most common is 1099-MISC, in which your business reports miscellaneous income. . Are Our Employees 1099 or W2? Hi guys and welcome back to the channel. Win/Loss statements show net. ). W2 is better. 1099 vs W2 employee, which on should you choose as a business owner? Well the answer may surprise you because there are many pros & cons that you have to loo. C. Once a professional athlete has signed a contract with the team, financial planning, income tax. The payer reports the payments to the IRS, and. For instance, if you borrowed $100,000 and defaulted on your mortgage after repaying only $80,000, there would be a remaining balance of $20,000. If your settlement included back pay, your answer should be yes. W2 vs 1099 comparison. If you are unable to locate your CSA or CSF claim number, or you are not a retiree, former spouse of a retiree or a survivor of a retiree, or you are inquiring about the status of a refund application, please contact us onThe W-2 and 1099 forms play vital roles in the tax preparation process, serving as official records of income that are crucial for accurate tax calculation and reporting. Alaska PFD or capital gains distributions shown on a 1099-DIV, View solution in original post June 7, 2019 3:54 PM. Alaska PFD or capital gains distributions shown on a 1099-DIV, View solution in original post June 7, 2019 3:54 PM. . Collect all tax documents including year end paystub, W2, duty days, 1099s. The company can cut back your. Churches will need to use this form if they made payments totaling $600 or more to a non-employee, such as an independent. It really depends on how the stay bonus was handled by the original company. Based on my research so far, I understand that if I go for 1099, I am responsible to pay for Social and medicare taxes, but at the same time, I have freedom to select the correct health insurance plan and reimburse along with other work expenses. 3% in self-employment tax vs. ago. You may receive a second W-2 from an insurer. They must also pay income taxes in the state in which they reside. Yes, you will pay more in taxes if you choose 1099. This means that a player contributing $10,000 will immediately have $30,000 in his 1 Answer. Let’s take a look at Naomi’s results. In addition, W-2 workers pay less in FICA taxes. If you are considering growing your team, you may wonder if you should hire a W2 employee or a 1099 contractor. 3% in self-employment tax vs. 1099 vs W-2 is not a choice you get to make. 585 from January to June, and then $0. These include: booking fees for recording studios. A quick way to get your lost W2 or 1099 information is to use the IRS Get Transcript online to view your Wage and Income Transcript. Hi r/Tax ! Like title says, I'm a "current" W2 employee thinking of changing to 1099 (which I can do at any time). 9 million for the 2013-14 season. As long as you report the total income you’ve made (and the source it came from), you shouldn’t run into any issues. utility costs for your workspace. W2 employees have a full-time job with the company, and benefits often come with that position. Poker tournament winnings are more than $5,000. Step 4: File Form 4852 with your tax return. Before using Form 4852, get in touch with your employer or payer and request that they amend your Form W-2 or 1099-R if it needs to be updated. This of course means that I'm responsible for self-employment taxes, which is an awfully big number. I normally file my taxes myself, however, I am considering seeing an advisor this year due to the following. If them are looking for Are NBA players w2? or , click come! - DNA of SPORTS If you are looking for Are NBA players w2? or , click here! - DNA of SPORTS Two recent cases in the pharmacy space exemplify the risks of paying commissions to 1099 independent contractor marketing reps. W-2 e 1099 são formulários de impostos usados para declarar renda, mas diferem nos tipos de renda que representam. 1099: tax document comparison. Taxes are not usually withheld by the payer for 1099 forms. Yes, professional athletes pay duty in multiple states stationed on where their games belong played. How can I tell if a job is W-2 vs 1099? You’ll see a “W2” label when viewing a W-2 opportunity in the app. Um formulário W-2 é fornecido por um empregador a um funcionário e informa salários, salários e retenções de impostos. Franchise dealers pretty much all take taxes out. Royalty checks are paid in September or October, and are reported to the player on Form 1099. Employees use this information to prepare their annual tax returns. You’re only an employee if you provided a W-4, received a W-2, or otherwise entered into an employment agreement. Some benefits of having W-2 workers include: : You have more. Let’s discuss TIN Matching Frequently Asked Questions (FAQs) to understand more about the IRS TIN Matching Process and how it works. . 95 more doing 1099 work than W-2 work. As an employee, you receive a W2 at the end of the year, you’re paid on a regular payroll, and taxes are taken out of that. Standard mileage method. The goal would be to not work for a corporate mortgage broker company, and also be able to work as an independent contractor with a 1099. I am getting close to finishing residency. 2. For example, if you’re working with a tax professional, they’ll want you to scan your W2 form. Independent Contractors (i. The difference between 1099 vs. Riley Adams, CPA and owner of Young and the. To report wages from a W-2: Click on Federal Taxes > Wages & Income. 65% for your employer. This is a free filing method that allows you to electronically file your 1099-NEC Form, as well as apply for extensions, make amendments, and more. individual income tax return, and 1099, miscellaneous income or 1099,. You also have to pay quarterly income taxes as a 1099 since your employer won't be withholding any taxes for you. Brock Osweiler’s 2016 tax filing was about as simple as you can get for an NFL player: With the Texans he played home games in. They may offer a retirement match (3-10%). A 1099 employee is technically not an employee but is considered an independent contractor by the IRS. All you need to know to get ready for the 2023-2024 NFL and College Football Season!You will need your Social Security number or tax ID number, dependent information (if applicable), the forms that document your sources of income (W-2, 1099, 1099-K, 1040, etc. $5,738) to be better off. Most NFL players maintain a contract with a shoe company which provides for a limited amount of clothing/shoes/etc. You end up missclassified as 1099 and receive no benefits and they can attempt to screw you over any way they can. Caesars Palace - W2G Automated Tax Form. Benefits: As a contractor, you won’t get employee benefits like healthcare, retirement savings accounts, and employee discounts. Generally speaking, the threshold for when you need to file a 1099 form is $600 paid to. Currently 1099 as wife is W2 for family insurance. this could easily (legally) be a 1099 or a W2 position, and because of that, I feel like it'll probably be a 1099 position so the recruiter can get out of paying social security and whatever other taxes W2 employers usually. About This Data. It is not easy to take this position with a Form 1099, but it is vastly easier to claim it with a Form 1099 than it is with a Form W-2. For Total Wages Received, enter the amount of the bonus. 65 percent, of. Received a W2 and 1099-NEC From the Same Employer. Independent Contractors (i. The classification must always be made on the basis of whether the worker meets federal and. You must issue her a w-2. 5. 1099 vs w2 equals big savings for the employer. As an independent contractor, you receive a 1099. Kobe Bryant was the top-paid player at $30. Mail: If you prefer to file your 1099-NEC Form by paper, you can. IRS - see page 9 So all the talk about contracts and the tax rates of different NHL cities got me curious about the tax status of NHL players (and, by extension, players in other sports). Players Inc. Part of your social security and Medicare taxes will be covered by your employer. Formed in 1994, NFL Players Inc. An employee (common-law employee) A statutory employee. You should not give her a 1099-Misc. When you work as an independent contractor and are paid $600 or more during the year, you’ll be required to file a 1099-NEC, formerly called 1099-MISC form. NFL players also have specific rights under the. Pros of the 1099: Cost Savings: 1099 contractors are typically less expensive than W2 employees. Have done so most of the time in my case. Click “1099-R Summary” under My Payroll Information. They use this form to file their personal income tax return, which is due on April 15 of the following year. 1099 workers differ mainly because the former. Deduction isn’t worth the same as paying tax. Form 1099-K shows the value of the transactions the PSE has processed for you in the past year. Your employer will pay some or all of your. W2 employees are on your payroll, and you withhold FICA taxes from their pay. For example, if a bettor had $10,000 in sports betting winnings in 2021, and $8,000 in losses, he could deduct. W-2 income Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EIC) Child Tax Credit (CTC) Student loan interest deduction Situations not covered: Itemized deductions Unemployment income reported on a 1099-G. In the end, Naomi takes home $13,509. "Hey NFL Player, you have lots of money, and we have cute starving emus that really need your help!" Here's a blurb from Foundation Source about some of the benefits to starting your own foundation. Employers pay half, or 7. Professional athletes must file tax returns for each state that requires jock tax. If you don’t receive a 1099-K, the IRS still expects you will report all your income, regardless of the amount. If you win money betting on sports from sites like DraftKings, FanDuel, or Bovada, it is also taxable income. 1. With this method, you keep track of how many miles you actually drive for work. Higher Level Of Job Commitment. The 1099 vs W2 distinction is what separates employees from the self-employed. When you are in the Document Center section, you should be able to see a 1099 form. Understanding what a 1099 commission-based. An independent contractor. I'll give the opposing viewpoint: that this ought to be on a Form W-2, one way or the other. 2 6 23,511 Reply. When you start working for someone you either give them a W4 (employee) or a W9 (contractor/vendor) to indicate your tax information. Then, you multiply each mile by a standard amount set by the IRS.