Except the IRS isn't clear about this at all.There isn't supposed to be a "choice" about whether a job is W2 or 1099.
It would depend upon the type of job and the tasks/responsibilities.
The IRS is pretty clear on this, and distinguishes the different characteristics.
Note the IRS says: "There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination."Facts that provide evidence of the degree of control and independence fall into three categories:
Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of relationship: Are there written contracts or employee type benefits (that is, pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?
Businesses must weigh all these factors when determining whether a worker is an employee or independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor. There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.
The fact of the matter is that the IRS can get involved in cases where low wage workers are exploited by an abusive employer but for high wage workers, especially in tech, the IRS seems to take the position that the worker and employer will work things out to their mutual benefit. All of the big companies like Google, Microsoft, Amazon and Meta have thousands of high paid contractors. Some are even program managers.
Statistics: Posted by billaster — Sat May 18, 2024 10:56 pm — Replies 6 — Views 755