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.
“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?”
“How does hiring a 1099 contractor affect my business taxes?”
“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.
Back to the full library