Hiring & Payroll
“What changes tax-wise if I make someone my W-2 employee?”
Making someone a W-2 employee often changes how payroll, withholding, and reporting are handled, compared with paying an independent contractor. The answer usually depends on the person’s job duties, how much control the business has over the work, and whether the arrangement is ongoing or project based. It can also affect unemployment insurance, workers’ compensation, and the business’s recordkeeping and year-end forms. In many cases, the classification choice also influences how compensation is tracked for federal and state tax purposes, since employee wages are generally treated differently from contractor payments. 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.
“As a freelancer hiring my first employee in Alabama, what do I need to set up?”
“As a freelancer hiring my first employee in Alaska, what do I need to set up?”
“As a freelancer hiring my first employee in Arizona, what do I need to set up?”
“As a freelancer hiring my first employee in Arkansas, what do I need to set up?”
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for 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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