satish kadam
Jul 5, 2009, 04:05 AM
What is difference between Corp to corp & W2 & 1099? Can anyone tell me?
What its effects on Taxes? Reply me.
Thanks in advance
AtlantaTaxExpert
Jul 6, 2009, 09:38 AM
W-2s are issued to employees to document salary or wages.
Form 1099-MISC is required to be issued to ANYONE who is NOT an employee who receives payment or compensation for work done or services rendered if the compensation exceeds $600 per year.
Copies of both the W-2 and the Form 1099-MISC are sent to the IRS and state tax departments to provide a paper trail of compensation paid to employees (via the W-2) and to independent contractors (via the Form 1099-MISC).
However, the Form 1099-MISC is NOT REQUIRED if the work or services rendered is between corporations. That is what is meant by corp-to-corp.