Difference Between W2 and 1099
The difference between W2 and 1099 is very small as both forms are basically information returns used for reporting income paid and taxes withheld from this income.
The main difference between the two tax forms is that while Forms 1099 can be issued to anyone for certain types of payments, Forms W=2 is only issued to employees by employers. So if you’re an employer and have employees working for you, Form W-2 will be filed for each employee you have to report wage, salary, and tips paid.
This is pretty much the difference between the two forms. Forms 1099 can be issued to anyone for certain types of payments made whereas Form W-2 is only filed for employees.
Deadline to file both forms is the same
If you’re required to file either one of these tax forms to their recipients, know that you have until January 31 to file them. However, you don’t necessarily need to send Form W-2 to the IRS to report the wage, salary, and tips paid to an employee along with the income and FICA taxes withheld, you need to report Forms 1099.
This is done by not mailing or filing Forms 1099 with the IRS but filing a Form 1096 for each type of Form 1099 you filed. For example, if you filed ten different Forms 1099-MISC, you must file one Form 1096 reporting the total amount of payments made to the recipient. And, of course, the tax withheld from income if any.
The deadline to file Forms 1099 with the recipient is January 31 but the deadline to file with the IRS is February 28th for mailed forms and March 31 for electronically filed ones.