Hire help the right way

Treating a worker as a contractor when they are really an employee can lead to back taxes and penalties.

• Learn the difference between employees (W-2) and independent contractors (1099). Your accountant can help.
• Collect a Form W-9 from every contractor before you pay them.
• For payments made in 2026 and later, you generally file Form 1099-NEC for contractors you pay $2,000 or more in a year (it was $600 before).
• For employees: complete Form I-9, report new hires to your state and use a payroll service to handle withholding.

This playbook is general information, not legal, tax or financial advice. Rules change, so confirm details with a licensed professional. Last reviewed September 2026.