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As a 1099 worker, you have the autonomy to make your own schedule, advertise your services and more. However, independent contractors must pay taxes out of pocket and are not entitled to overtime, guaranteed minimum wage, workers' compensation or unemployment benefits.

If you classify a worker as a W-2 employee, you are required to withhold social security tax, income tax, Medicare tax and any state income taxes for the benefit of the employee. If you classify a worker as a 1099 contractor, they are responsible for paying federal and state taxes themselves.

?An independent contractor is someone who provides services to a business but is not paid as an employee. At the beginning of each year, those people are given an IRS Form 1099 showing amounts paid. This is different from someone on the payroll as an employee, who will receive a Form W-2.

A 1099 worker is typically less expensive than a W-2 employee and ready to immediately accomplish a task without any extra training. However, they can usually pick and choose what work they accept ? as such, they may not always be available to take on the work you need done.

?An independent contractor is an individual who provides services to a business without being classified as an employee. At the start of each year, independent contractors receive an IRS Form 1099 detailing their earnings, setting them apart from employees, who receive a Form W-2.

The Massachusetts self employment tax is paid quarterly using Form 1040-ES, Estimated Tax for Individuals. Then file your annual tax return using Schedule SE (Form 1040 or 1040-SR ), Self-Employment Tax to report your Social Security and Medicare taxes.