There are certain expressions in the employment law world that don’t make much sense. Call them: Employment Law Oxymorons.
At least for me, hearing an employer ask what they should do about their “1099 Employees” is one of them.
Let’s back up one step:
- Employees are paid wages and as such, they get issued a W-2 tax form at the end of the year.
- Independent contractors are paid fees and as such, they should be issued a 1099 tax form.
See the difference?
So when someone says a “1099 employee”, under the law, there really is no such thing. The problem is that some employers still do not understand the differences or, worse, improperly label workers as “independent contractors” instead of employees.
The modern day example of this was a series of tweets put out last week by a website advertising for a “full-time freelance position.”
See the contradictions? Full-time and freelance don’t really mesh together. If you’re truly freelance, you should be able to set your time, place and manner of work.
How do you tell the difference? I previously covered the different tests that should be used but suffice to say that using the phrases “full-time freelancer” and “1099 employees” may indicate that you may not be following either.