In plain words
A W-2 employee is on your payroll: you withhold their income tax, pay the employer payroll tax, and usually offer benefits. A 1099 contractor sends you an invoice and pays their own taxes.
The IRS decides which one someone is by how the work is controlled: who sets the hours, the tools and the method. What the contract calls them does not decide it. Treat an employee as a contractor and the back taxes and penalties are yours.
Example
The same bookkeeper, two ways
Works your hours, in your systems, as you directLikely an employee
Runs their own practice, several clients, own methodsLikely a contractor
In our model
person
Hire: your W-2 employee, on your payroll. Dedicated person: employed by us. You pay one invoice a month and nothing goes on your payroll.
Hire: your W-2 employee, on your payroll. Dedicated person: employed by us. You pay one invoice a month and nothing goes on your payroll.