Can you handle payroll for both employees and subcontractors?
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.
Fractional CFO & Bookkeeping
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More Questions
What questions should I ask before hiring a fractional CFO?
Ask about experience with businesses your size and industry, what they deliver each month, how they handle cash flow and forecasting, communication frequency, and how they coordinate with your accountant.
Read answerWhen are New Jersey payroll tax returns due?
New Jersey employers file Form NJ-927 and Form WR-30 quarterly on April 30, July 30, October 30, and January 30. Note that these fall on the 30th of the month, not the 31st like federal Form 941.
Read answerWhat is the difference between a fractional CFO and a controller?
A controller oversees the accuracy of your books and financial reporting. A fractional CFO uses those numbers for forecasting, cash flow planning, and strategic decisions. Many growing businesses eventually need both.
Read answerShould I do my own books or outsource them?
DIY bookkeeping can work early on when transactions are simple and few. But as the business grows, the time and accuracy costs usually outweigh the savings. Most owners reach a tipping point where outsourcing frees them to focus on actually running the business.
Read answerCan a fractional CFO help me raise money or get a loan?
Yes. A fractional CFO prepares the financial statements, projections, and cash flow models that lenders and investors require. They also help you evaluate financing options and present your business in the best light.
Read answerDoes a fractional CFO replace my accountant?
No. They serve different purposes. Your accountant handles taxes and compliance. A fractional CFO focuses on strategy, cash flow, and forward-looking financial decisions. You need both.
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