Arizona Jury Instruction - 1.9.4.1 Employee Self-Employed Independent Contractor
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FAQ
What are the rules for 1099 employees? 1099 employees must be properly classified. ... Independent contractors must work independently. ... Employers need an IRS W-9 Form on file for their independent contractors. ... 1099 employees still need written employment agreements. ... 1099 employees are not entitled to employment benefits.
Factors for determining whether an individual is an independent contractor or employee for purposes of awarding workers' compensation include: duration of employment; method of payment; who furnishes necessary equipment; right to hire and fire; who bears responsibility for workers' compensation insurance; extent to ...
1099 employees don't have to paid overtime. Since they aren't on payroll, you can keep payroll and other taxes, including the unemployment tax, under control. They can't collect workers' compensation so you get a break on premiums as well.
Generally, you do not have to provide workers' compensation insurance for an independent contractor. But, there are often disputes over whether a worker is an employee or an independent contractor. To resolve these disputes courts consider the ?totality of facts? on a case-by-case basis.
A 1099 worker is a freelancer, independent contractor, or other self-employed worker that completes particular jobs or assignments; they are not employees of the company.