What are “1099 Employees”?

chupacabra news independent contractor 1099 employee

The chupacabra is a heavy creature, reportedly the size of a small bear, with a row of spines reaching from the neck to the base of the tail. Its name means “goat-sucker,” which comes from its habit of attacking livestock, especially goats, and sucking their blood. [Editor’s note: Please, folks, protect your goats.]

Why am I leading this post with information about the chupacabra?

[SPOILER ALERT:] Because it’s not real. Not a thing. Doesn’t exist.

Same with “1099 employees.” Businesses using this term almost certainly are trying to classify these individuals as independent contractors. As we know, independent contractors (if properly classified) are not employees at all. Business must report the compensation of employees on a Form W-2, not Form 1099.

When businesses describe independent contractors using terms like “1099 employee,” they are raising red flags, suggesting possible independent contractor misclassification — almost begging for an audit!

As we discussed here, what you call your contractors can make a big difference in determining whether they are truly independent contractors or should instead be classified as employees under the law.

Remember, the determination of Who Is My Employee? — that is, employee vs. independent contractor — is made based on legal standards, not how the parties decide to classify their relationship. You can call your pet three-toed sloth “Usain Bolt,” but that doesn’t mean he’s fast. (I’m sure he’s cute, but he’s not fast.)

So please don’t call your independent contractors “1099 employees.” Or we’ll send the chupacabras after you and your goats.

© 2017 Todd Lebowitz, posted on WhoIsMyEmployee.com, Exploring Issues of Independent Contractor Misclassification and Joint Employment. All rights reserved.

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