1099 Employee

A 1099 employee, also known as an independent contractor, is a worker who provides a service to a company but is not an official employee. The term ‘1099 employee’ comes from the IRS Form 1099 that contractors receive at the end of the year to report their earnings. Unlike regular employees who are issued a W2 and have taxes withheld from their paychecks, 1099 workers are responsible for managing and paying their own taxes, including self-employment tax.

Due to their self-employed status, they typically don’t receive benefits such as health insurance, retirement plans, or paid leave from the hiring entity. However, they often enjoy more flexibility and autonomy in how they conduct their work.