W-2 vs. 1099 in 2025 en New York

As IRS enforcement tightens in 2025, properly classifying workers as W-2 employees or 1099 independent contractors is critical. Misclassification can lead to audits, penalties, and back taxes. This guide breaks down the latest IRS Guidelines 2025, explains how to apply the economic reality test, and helps businesses avoid common compliance mistakes. Learn how to protect your organization, determine the right worker status, and reduce the risk of a 1099 audit. Stay ahead of regulatory changes and confidently manage your workforce in today’s evolving business landscape.