IRS Form W-2 and Form 1099

Local governments are required to file Internal Revenue Service (IRS) Form W-2 to report employee wages, tips, and other compensation. In addition, entities need to file Form 1099-MISC for non-employees (e.g., independent contractors) who received $600 or more for their services. The forms must be submitted to the recipient of the income and to the IRS.

Consult with your attorney if you are uncertain whether a person is an employee or an independent contractor. The IRS website also contains considerable information on this topic.

• Form W-2: https://www.irs.gov/forms-pubs/about-form-w-2
• Form 1099-MISC: https://www.irs.gov/forms-pubs/about-form-1099-misc

In addition, the IRS may be contacted directly about any specific situation.

Date this Avoiding Pitfall was most recently published: 1/7/2022