02/03/2026
I see this all the time with small businesses. People think they’re hiring contractors, but the IRS sees employees. And when the IRS decides? uh oh.
In this video, I break down:
• The real difference between W-2 employees and 1099 contractors
• Who controls the work (and why that matters)
• What happens during an IRS audit
• How penalties stack up when workers are misclassified
If you’re paying people and unsure how they should be classified, this is a must-watch. Fixing it now can save you a lot of stress, and a lot of money, later.