
1099 vs W-2: Key Differences for Workers
W-2 workers are employees with taxes withheld; 1099 workers are independent contractors who handle their own taxes. Compare pay, taxes, benefits and rights.
Your paycheck is packed with terms and abbreviations. This hub explains pay periods, overtime, deductions, tax forms and the lines on a pay stub, with simple examples and links to official IRS and Department of Labor guidance.

W-2 workers are employees with taxes withheld; 1099 workers are independent contractors who handle their own taxes. Compare pay, taxes, benefits and rights.

A pay period is the stretch of time your paycheck covers. Compare weekly, biweekly, semimonthly and monthly pay periods with a simple salary example.

Gross pay is what you earn before deductions; net pay is what lands in your account. See a worked paycheck example and how to calculate both.

A W-4 tells your employer how much federal income tax to withhold from your pay. Learn what each step means and when to update it.

Shift differential is extra pay for working less desirable shifts, like nights or weekends. See how it’s calculated, common structures and how it affects overtime.

Pre-tax deductions come out of your pay before taxes are figured, which lowers your taxable income. See common examples and a simple paycheck example.

Direct deposit sends your paycheck straight into your bank account. Learn how it works, what you need to set it up and what to do if a payment is late.