Yes. VJD Financial Solutions runs W-2 payroll for employees and prepares 1099s for subcontractors. If your business uses both, the bookkeeping handles them together.

Employees require full payroll processing. That means calculating wages, withholding federal and New Jersey state taxes, making timely tax deposits, filing quarterly reports, and issuing W-2s at year end. Miss a deposit deadline or file late and penalties add up fast.

Subcontractors work differently. You pay them without withholding anything. They handle their own taxes. Your obligation is tracking what you paid them and issuing a 1099-NEC at year end to anyone who received $600 or more.

What matters most is classifying each worker correctly from the start. The IRS and New Jersey look at whether you control how, when, and where the work gets done. Employees work under your direction. Subcontractors generally set their own schedules, use their own tools, and work for multiple clients.

Getting this wrong is expensive. Misclassifying an employee as a subcontractor means you owe back taxes, penalties, and interest. New Jersey bookkeepers who work with trades businesses see this often because construction crews regularly include both W-2 employees and 1099 subcontractors on the same project.

VJD keeps records that support your classifications. Contracts, payment history, and notes on the working relationship all matter if a question ever comes up. The paper trail shows why each worker is categorized the way they are.

Full-service payroll covers the employee side with all the withholding, deposits, and filings handled each pay period. 1099 preparation happens at year end for your contractors. Both need to be tracked consistently throughout the year so nothing falls through the cracks.