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.

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

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