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California and Federal Employment Taxes for Independent ContractorsYou must file an annual income tax return (Form 1040). This requirement applies if you earned $400 or more through self-employment.You must pay estimated taxes on a quarterly basis. Specifically, you are responsible for paying:
A: To file the Form 1099-MISC, you'll need a Form W-9 and a Tax Identification Number (TIN) for each independent contractor. The contractor provides you the Form W-9. You should have every contractor fill out this document before services are provided. This will ensure you have the information you need to file.
In September of 2019, Governor Newsom signed Assembly Bill (AB) 5 into law. The new law addresses the employment status of workers when the hiring entity claims the worker is an independent contractor and not an employee.
In September of 2019, Governor Newsom signed Assembly Bill (AB) 5 into law. The new law addresses the employment status of workers when the hiring entity claims the worker is an independent contractor and not an employee.
As of the 2020 tax year, the IRS Form 1099-NEC is the independent contractor tax form used by businesses to report payments to a contract worker in the previous tax year. This tax form for independent contractors is filed with the IRS and is also provided to the contractor for reporting income.