What matters is whether the person receiving your services has the right to control how you perform your work. Under federal tax laws, you are not an independent contractor for tax purposes just because you receive a 1099. And, receipt of a 1099 is irrelevant to determining whether you are an employee under the FLSA, FMLA, or MSPA. Receiving a 1099 tax form is simply the result of how your employer classifies you for federal tax purposes, but the form itself does not mean you are correctly classified as an independent contractor for federal tax purposes. Similarly, you are an employee if your work falls within a law’s definition of employment. You may be an independent contractor if your work does not fall within a law’s definition of employment. FACT #3: Receiving a 1099 does not make you an independent contractor. MYTH #3: I received a 1099 tax form from my employer, and this makes me an independent contractor. To learn more about UI eligibility and misclassification, please see the Worker Misclassification heading under the Unemployment Tax Topics page. To locate your state UI agency, please see this list of state UI agencies. To determine if you may be eligible for UI, please contact your state UI agency. Being classified as an independent contractor does not prohibit you from seeking UI. Even if you are considered to be an independent contractor by a business entity the state UI agency will make a determination as to whether that classification is correct under its laws or whether you are an employee and eligible for UI. FACT #2: You may still qualify for UI even if you are classified as an independent contractor.Įach state follows its statutes, regulations or policies to determine whether an employer-employee relationship exists. MYTH #2: If I am classified as an independent contractor, I am not eligible for unemployment insurance (UI). In addition, federal and state governments lose billions of dollars each year in tax revenue as a result of misclassification. Misclassification also hurts law-abiding business owners who don’t get to compete on a level playing field when some employers wrongly classify their workers as independent contractors and thereby lower their costs unlawfully. Employer payment of half of the Social Security and Medicare Taxes.The availability of unemployment insurance (UI).The availability of workers’ compensation if you are injured on the job.Certain anti-discrimination and anti-retaliation protections.The right to unpaid, job-protected family and medical leave.The right to minimum wage, overtime pay.Among others, these benefits and protections may include: Typically, only workers who are “employees” have access to important benefits and protections under certain federal, state, and local laws.

Misclassification also has negative effects on businesses. FACT #1: If you are misclassified as an independent contractor, you may be denied benefits and protections to which employees are legally entitled. But it really doesn't matter as long as I get paid. MYTH #1: My boss calls me an independent contractor, not an employee. I am an independent contractor because it is established practice in my industry to classify workers like me as independent contractors.I have been an independent contractor for years this means I will continue to be an independent contractor.I telework or work off-site, so I am an independent contractor.My employer wants me to be an independent contractor, and that means I am not an employee.This means that I am an independent contractor. I have my own employer identification number (EIN) or paperwork stating I am performing services as a Limited Liability Corporation (LLC) or other business entity.

I am not on the payroll, so I am not an employee.I am an independent contractor because I signed an independent contractor agreement.I have been told that I am an independent contractor, this means that I am not entitled to any of the benefits and protections provided to people who meet the definition of an 'employee'.I received a 1099 tax form from my employer, and this makes me an independent contractor.If I am classified as an independent contractor, I am not eligible for unemployment insurance (UI).

My boss calls me an independent contractor, not an employee.

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