Hiring & Payroll
“What's the difference on my taxes if I use a contractor instead of payroll?”
The tax difference often comes down to how the worker is classified and how the payments are documented. With a contractor, the business usually treats the payments differently than payroll wages, which can affect withholding, employer payroll taxes, and year-end reporting. The answer also depends on the level of control over the work, whether the person uses their own tools, and how the arrangement is reflected in invoices or agreements. In many cases, state rules and federal reporting requirements can also influence the outcome, especially if the role looks more like an employee relationship. Walking the details through with a CPA is the fastest way to know what truly applies here.
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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