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Self Employment/1099

A 1099 employee is an independent contractor who provides a service to a company but is not an official employee of that company. But the term ‘1099 employee’ is actually a misnomer. The correct terms for a 1099 employee are independent contractor, non-payroll worker, or self-employed worker. The term 1099 employee most likely comes from the 1099-NEC or 1099-MISC form that businesses use to report payments made to contractors.

 

1099 Employees Examples

There are a wide range of 1099 employees examples in different industries. Here are some of the most common 1099 employees:

Gig worker: This is an independent contractor that performs temporary jobs using an app or online labor marketplace. Common examples are rideshare and delivery drivers. Freelancer: This independent contractor works on a short-term basis and usually offers a specialized set of skills. They’re often paid by the project or hour and work for multiple clients simultaneously. Freelancers are common in marketing, finance or design disciplines. Outsourced workers: This is a third-party team of workers you contract temporarily to help you perform certain tasks. Sometimes outsourced workers can be considered contingent workers or temp employees. For example, a temporary sales rep you hire during busy seasons.