Is There a W2 Self Employed Tax Form?

Employers sometimes think there is a W2 form they use for self employed workers, but the reality is that there is no W2 self employed tax form. A review of how self employed individuals pay taxes to the IRS may be useful for understanding how an employer handles reporting the wages they pay to people not on their usual payroll. Additionally, employers may find it useful to know how to file taxes for non-employee workers they may pay throughout the year. No matter what types of workers you employ, AMS tax software supports the forms you need and makes filing simple.



How Self Employed Individuals Pay Taxes

Self employed individuals are those who conduct a business on their own or as an independent contractor. They are not on an employer’s payroll, and they are responsible for their own training, materials, and employment taxes. When an employer hires someone who is self employed, they become the payer and the worker is the payee.

Since there is no W2 self employed form, self employed individuals pay their own self employment taxes to the IRS. The IRS requires self employed people to file an annual tax form as well as pay self employment taxes quarterly. Unlike employees who have their employer withhold part of their paycheck to pay for Social Security and Medicare, self employed workers pay this tax themselves. All income and tax reporting occurs with the 1040 tax form.


How Employers File Taxes for Nonemployee Workers Without a W2 Self Employed Form

Even though employers do not withhold any pay from self employed workers, the employer must still file the annual tax form 1099 for any payments greater than $600 to nonemployees. The IRS provides a detailed list of instructions for employers who need to file a 1099 for other purposes beyond for nonemployee compensation. However, the steps for the 1099-NEC strictly for nonemployee compensation is relatively simple.

On the 1099-NEC, you are the payer and the contractor is the payee. You provide contact and tax identification for both yourself and the payee. Then, you report the amount you paid to the self employed payee. You must file the original Copy A with the IRS, and you can send a copy to the payee and keep a copy for your records. The self employed individual will use this information to file their own employment tax and income forms.


AMS Tax Software Supports All the Tax Forms for Employers 



Because there is no W2 self employed form, employers need a tax software which allows them to file a variety of tax forms. AMS W2/1099 Forms Filer is an ideal software package for employers who need to file for different types of employees. AMS takes a modular approach to our software packages, meaning you can add on modules to the base package to customize your tax season too.

You can access a free demo of our software to try it out for yourself. Call our Sales and Information Team at (800) 536-1099 with any questions you may have.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.