Hiring & Payroll
“What’s the difference on taxes if I hire someone W-2 instead of another way?”
The tax difference between hiring a worker as a W-2 employee versus using another arrangement often comes down to control, payroll handling, and who is responsible for employment taxes and filings. With W-2 wages, employers typically deal with payroll withholding, employer-side tax costs, and year-end reporting, while other setups may shift more of the tax burden and recordkeeping to the worker. The facts that usually matter most are how much direction the business gives, how the work is performed, and whether the person is treated as an employee or an independent contractor in practice. 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.
“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 Colorado, what do I need to set up?”
“As a freelancer hiring my first employee in California, 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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