What is W - 2 employee?

Answer 1

Most employees will receive a W-2 at the end of the year, showing their earnings from that employer and what has been deducted. The employer will deduct social security (and pay the employer half), and federal, state and local income taxes if applicable, as well as other deductions such as insurance.

Some workers are independent contractors. At the end of the year, they receive a 1099 instead of a W-2, and they have to pay all their own taxes including both halves of the social security amount.