October 06, 2025

1099 workers vs W-2 employees: What’s the difference?

10 minutes

Employers sometimes refer to independent contractors as "1099" workers and employees as "W-2" workers after the IRS forms used to report income for these types of workers. What’s the difference between an independent contractor and an employee? Listen in as we cover:

[00:59] Differences between independent contractors and employees

[02:12] Does providing a 1099 dictate classification?

[03:03] Federal tests for independent contractors

[05:28] State tests for independent contractors

[06:45] Does a written contract dictate classification?

[07:08] Bringing back laid-off employees as independent contractors?

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