AS the guys have mentioned.........The 1099 form is used by businesses to consolidate funds paid to other businesses for services. A copy goes to the IRS. Consider you, as a builder, hire a plumber...he does the things you have contracted him to do and you pay him a sum upon completion; he is a contractor!
What is being observed & has always been baned (illigal) IS employers treating employees as "contractors." Cable & Sat operators are being observed. As mentioned by others , a series of questions has been developed to discern who is what.
So if you are given several work orders.......that you have agreed to in price, time, location and other specifications........you go do them & send an invoice for payment upon completion ....You are a contractor.
IF you are told to report to an office & wait around for work orders, materials or meetings and then scheduled to go do jobs....you are an employee (see the whole IRS list ) and your employer is in deep shit for not paying ALL the costs of an employee...especially insurance and FICA.
The difference between an employee ( W 2 ) and a contractor (1099) is a big legal deal!
Joe
Re: Was and is 1099 band by government
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