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.
“What changes on my taxes if I hire someone as a 1099 contractor?”
“What should I know about hiring a 1099 contractor for my business taxes?”
“Should I put my worker on 1099 or W-2, and what's the tax difference?”
“Should I classify my worker as a 1099 contractor or an employee?”
“I want to offer my employees a massive year-end bonus but I am worried about the tax hit, what is the most tax-efficient way to pay out bonuses?”
“I officially hired my teenage children to work in my family business, are their specific wages legally exempt from FICA and unemployment 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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