I am hiring a helper this week for my small reseller business. In general she qualifies as a 1099 contractor, but I know their are benefits to the worker if they are W2 when it comes tax time for them. How much is the cost difference to the small business to have a W2 employee? I know there are added costs like unemployment tax and workers comp. Where can I find that information so I can make the right decision? She is only working 24 hours a week at $10 an hour.
that varies state by state and what category they qualify under for workman's comp.
if this is the only employee and legally they would qualify under contractor you are much better off financially doing that. having a workman's comp policy for 1 person will be costly and the employment and medicare taxes add up.
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