Hiring & Payroll
“How does hiring a 1099 contractor affect my business taxes?”
Hiring a 1099 contractor can affect a business in several ways, especially around payroll reporting, expense classification, and worker classification risk. The tax treatment often depends on how the work is structured, whether the contractor is truly independent, and how payments are documented in your records. In many cases, businesses also look at whether the arrangement changes bookkeeping, year-end information reporting, and the mix of labor costs versus employee costs. State rules and the facts of the working relationship can matter as well, since misclassification concerns often turn on control, supervision, and the nature of the services provided. Sitting down with a CPA for thirty minutes is usually enough to draw a clean line on this.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I classify my worker as a 1099 contractor or an employee?”
“How do I know if I should pay someone as a 1099 contractor?”
“Do I need to treat my new hire as a 1099 contractor for tax purposes?”
“How do I decide between a 1099 contractor and W-2 employee for my business?”
“As a travel nurse picking up temporary shifts in three different states, how do I figure out which state legally gets my income tax?”
“I hired a full-time virtual assistant living in another country, do I have to issue them a 1099 or withhold standard U.S. payroll taxes?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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