So you’ve used the services of a couple of 1099 contractors this year and you’re wondering about who must be issued a 1099 form and who needn’t receive one. Well read on below for a couple of quick tips regarding who requires a 1099 form and when they need it by.
What is the difference between 1099 and W-2
You see, whether someone is an independent contractor or an employee is a legal determination based on the circumstances of their engagement with the firm they work with. It has nothing to do, or at least very little to do, with how their firm has decided to label them. There are hundreds, if not thousands of reported cases elucidating the different circumstances of contractors and employees.