What is a 1099 Employee?
Table of Contents
In this article we explain the type of relationship a 1099 worker has with the company or individual(s) they work for.
Please note: at the bottom of this article are links to the IRS 1099 employment forms along with their instructions.
Am I a 1099 employee?
A worker that’s not required to come to work during certain hours is typically not defined as an employee. Instead, this worker is defined as a freelancer or contractor. A freelancer or independent contractor is free to work wherever they want whenever they want.
Employees are typically required to come to work between certain hours. In addition, employees are expected to meet deadlines and follow corporate directions and policies as part of their job duties. Essentially the employing company is able to exhibit some sort of control over the worker. Employees are typically paid monthly or biweekly an amount based on a pre-negotiated employment contract and salary. An employee’s employment relationship with a company is typically ‘at will’ and can be terminated at any point. Some employees are paid hourly.
On the other hand, contractors and freelancers are not accountable for punctuality. A company cannot require a freelancer to show up to work at a certain hour or to work between certain hours. Contractors are paid by the hour or project-based. A contractor or freelancer paid by the hour is most often paid to complete a specific project or task. It is not an ongoing employment relationship as is with an employee.
What’s an independent contractor or freelancer?
An independent contractor, also often called a freelancer, is a worker classification that has different, more flexible parameters than an employee worker classification. A freelancer makes their own hours, the company
What is a 1099? Why are some people called 1099 employees?
The term 1099 Employee is just a mash-up of words to describe a freelancer or contractor. 1099 is part of the name for the IRS form, 1099-MISC or 1099-NEC, that an independent contractor or freelancer receives from each company or entity that they worked for during any given tax year.
What are the tell tale signs I’m an employee?
You’re an employee, not a contractor or freelancer if medicare and social security payments are deducted from your gross pay. Itemized medicare and social security deductions on your paycheck studs indicate this. Next time you’re paid, take a close look at your paycheck stub.
How do I know if I’m an employee, independent contractor or freelancer
Please review the following article for a detailed explanation about whether you are an employee or independent contractor, Independent Contractor vs Employee.
Please visit this link for more information about form 1099-MISC, About Form 1099-MISC. However, please note that a 1099 form is a form that an employer, the entity (whether that entity is an individual or independent contractor) sends to the independent contractor or freelancer. Therefore, the worker receives this form from their employer.
About Falcon Expenses
Falcon Expenses is a top-rated expense and mileage tracker app for self-employed and small businesses to track expenses and tax deductions. Falcon customers record $6,600, on average, in annual tax deductions. Get started today. The longer you wait, the more tax deductions you miss.
Automatically track mileage expenses and expenses, keep an odometer log, receipt vault and log billable hours. Quickly organize expenses by time period, project, or client. Easily create expense reports and mileage logs with your expense data to email to anyone in PDF or spreadsheet formats, all from your phone. Falcon’s expense report template is IRS compliant. Use for keeping track of tax deductions, reimbursements, taxes, record keeping, and more. Falcon Expenses is great for self-employed, freelancers, realtors, delivery drivers, couriers, business travelers, truckers, and more.
Was this article helpful?
We are a team of writers and contributors with a passion for creating valuable content for small business owners, self-employed, entrepreneurs, and more.
Feel free to reach out to use as firstname.lastname@example.org