1099 contractor
A 1099 contractor is a US term for a self-employed worker paid outside payroll, rather than as a W-2 employee. The label comes from the tax form used to report that pay.
A 1099 contractor is a US term for a self-employed worker paid outside payroll, rather than as a W-2 employee.
The name comes from the information return used to report that pay. The person typically invoices, sets more of their own hours, and handles their own tax. Calling someone a 1099 contractor does not settle the legal question. If the hiring company controls when, where, and how the work is done, the person may still be an employee.
This split is US-specific. The UK analogue is a self-employed contractor (with IR35 a separate tax question), Canada an independent contractor, Australia an independent contractor or ABN contractor. Those tests differ. A DOL proposal in 2026 to revise the federal employee-versus-contractor analysis is a proposal, not a final rule.
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