Is an independent contractor the same as a 1099?

A 1099 Contractor is a name given to self-employed individuals who trigger the need for a company to issue a Form 1099-MISC to document earnings paid to this person for services rendered, beyond $599. An independent contractor is a nonemployee of the company.

Do you need workers comp for 1099 in Georgia?

In all states, businesses must pay for state workers’ compensation insurance coverage if an employee becomes injured or ill on the job. However, because of the complexity in Georgia law, even where a 1099 is present, you still might be considered an employee and therefore entitled to workers’ compensation benefits.

What makes an independent contractor a 1099 contractor?

W-2 positions direct employees as to how, when, and where they do a job. Workers who complete tasks or work on individual projects will fall under a 1099. An independent contractor is able to earn a living on his or her own rather than depending on an employer.

What kind of tax form do independent contractors use?

Independent contractors use a 1099 form, and employees use a W-2. For W-2 employees, all payroll taxes are deducted automatically from the paycheck and paid to the government by the employer. Contractors are responsible for paying their own payroll taxes and submitting them to the government on a quarterly basis.

Why do I need a contractor agreement with the IRS?

A contractor agreement can also help demonstrate that the person is truly an independent contractor and not an employee. It also shows the IRS that the contractor and the hiring firm are embarking on an independent contractor relationship. Who Makes Decisions on Classification?

When is an independent contractor considered an employee?

The independent contractor is considered a separate business and is not considered an employee. If work is considered integral to a business, that person will likely be an employee. Temporary or non-essential work can imply the status of contractor.