Hello there, @khite,
I'll share some insights about the differences between an employee and a vendor.
An employee is someone you pay with paychecks, withhold taxes, and give a W-2 form at the end of the year. He/she completes each of the following forms:
- I-9
- W-4
- State W-4 (if applicable)
For more information, please read through this article: Employees Overview. You can also check out the IRS guidelines about an employee category.
On the other hand, a vendor is someone that you pay money to, such as utility, landlord or subcontractor, who does work for you. Please see this article for more details: Vendors Overview.
Before setting up a 1099 vendor in the program, please visit the IRS guidelines to see if your vendor falls under the Independent Contractor category.
This will get the information you need for today, @khite.
If I can be of further assistance, please let me know. I'll gladly help. Cheers!
