The easiest way to determine if an individual should be treated as an employee or a 1099 contractor is to look at 3 basic things:
- 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 their needs 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 person is an employee. For more information, please visit the IRS Website.