In general, if someone works for you short term + on a project basis without benefits, they are considered a 1099 independent contractor. But what happens when you have a recurring relationship with a worker who only performs work for you? That’s where the line starts to blur – and the burden is on the business to classify correctly. How can you tell the difference? Like we said, the line can be blurry between the two. However, a 1099 contractor usually behaves and interacts very differently than a W2 Employee. Below is a detailed Picture of some differences between the two:
If it’s still unclear after going through the checklist on the following page, the safest choice is to err on the side of classifying him as a W2 employee and treating him as such. (This will protect you from a LOT of potential fines and penalties in the future.) If you’re still unclear, you can complete IRS form SS-8, and they’ll give you an official determination on the worker’s status.
Of course, feel free to send us a message with any questions you may have – We’d love to help!