The easiest way to determine if an individual should be treated as an employee or a 1099 contractor is to look at three basic criteria:
- Does the company have control over when, what, and how the individual does their job?
- Does the company provide the individual with the tools and/or supplies that they need to perform their job?
- Is there a contract between the company and the individual or does the individual have employee-type benefits (company-provided PTO, health insurance, etc.)?
If the employer has control over any of these aspects of the job, then it is likely the individual should be classified as an employee. For more information, please visit the IRS Website.