Tax Reporting Responsibilities

W-2 Forms

For Employees: W-2 forms will be generated to report your wages and the taxes withheld from your paychecks. This includes federal, state, and local taxes.

Liang & Shum LLC will use Form W-4 to determine the amount of federal income tax to withhold from your paychecks.

1099 Forms

For Independent Contractors: If you are hired as an independent contractor and are paid $600 or more in a calendar year, Liang & Shum LLC must generate 1099 forms to report the payments made to you.

Types of 1099 Forms: The most common forms are 1099-NEC (Nonemployee Compensation) and 1099-MISC (Miscellaneous Income).

As an independent contractor, it is your responsibility to use Form W-9 to provide your taxpayer identification number (TIN) to the Liang & Shum LLC.