What defines a 1099 or W2 worker?
The easiest way to avoid employee classification errors is for employers to maintain a clear understanding of the factors that determine an employee’s status as 1099 or W2, and the differences between the two. According to Bradvica, an easy way to determine the appropriate status of a worker is that “a 1099 employee has a contract with a very specific end date. The worker is free to set their own schedule, and is only responsible for completing the project by the date specified in their contract.” On the other hand, “a W2 employee has a set schedule of work hours managed by the employer and has no specified end-date of employment.” Essentially, a 1099 employee is paid on a project basis, whereas a W2 employee is paid based on hours worked. Other more specific differences between 1099 and W2 employees are laid out in the IRS’ 20-point guide for determining employee classification: (click here to read the full list). The penalties of misclassifying workers If an employee is incorrectly c
