1099 and W2

Both the 1099 and the W2 are categories of worker classification and form part of the classifications under which employees are hired. 1099 represents an independent contractor, whereas a W2 is used to refer to the employees under the traditional form, where a company pays their salaries (Mehl, 2018). Besides, having an employee under W2 means paying their health insurance and taxes, among others. More so, it is more difficult to terminate the contract of a W2 employee as compared to that of 1099.

With that in mind, it becomes essential to conduct regular performance reviews and to document the behaviors of these kinds of employees (Mehl, 2018). Therefore, for a security business, it might be more beneficial to hire an independent contractor (a 1099 employee) when considering the elements such as costs. Besides, companies that hire employees require their presence for the better part of the day. That said, a W2 employee might be the better option for security businesses that need the presence of these employees (Mehl, 2018).

Stock Investment

            First, a stock (also called “equity” or ‘shares’) is a type of security that indicates proportional ownership in the issuing corporation. This person who then becomes a stockholder is entitled to a share of the assets or earnings of the corporation. Stocks usually are sold and bought mainly on stock exchanges. However, these stock exchanges could be private as long as they conform to the government’s legal requirements (Hayes, 2020). In essence, investing in stock means gaining ownership in a company by purchasing individual stocks that they believe will increase value over time. Investors can buy stocks and sell them after they have increased value. Alternatively, they can invest in stocks that pay dividends, most of which pay quarterly (Voigt & O’shea, 2020).

References

Hayes, A. (2020, February 19). Stock. Retrieved March 27, 2020, from Investopedia: https://www.investopedia.com/terms/s/stock.asp

Mehl, B. (2018, September 26). 1099 vs. W2: Which Is better for employees and contractors. Retrieved March 27, 2020, from Coworking Resources: https://www.coworkingresources.org/blog/1099-vs-w2-which-is-better-for-employees-and-contractors

Voigt, K., & O’shea, A. (2020, March 10). What is stock? Retrieved March 27, 2020, from Nerdwallet: https://www.nerdwallet.com/blog/investing/what-is-a-stock/