Legal Question in Employment Law in Utah

Definition of 1099 Independent Contractor

What constitutes a person to work as a 1099 independent contractor? What are the perimeters that convert one from a 1099 to a W-2 employee status? Where can I do more research on this?

Example: If a person receives primary income from one company under 1099 status, but is forced to work in a corporate office, maintain office hours, no sick/vacation leave, and must receive permission to miss or make up hours for doctor appointments, etc, Is this in compliance with Federal law re: independent contractor status? Are there time limits that a person or company can have this kind of arrangement? If a company forces a ''1099'' worker like described above, isn't that treatment like a W-2? Wouldn't that mandate the company to pay taxes, give benefits, etc to the contractor?

Thanks for your help.

AH


Asked on 6/23/04, 10:06 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Definition of 1099 Independent Contractor

The IRS and state agencies have standards for W-2 employees versus 1099 employees. A 1099 employee is considered a subcontractor, and is responsible for paying her own taxes, workmans compensation, etc., and is not generally entitled to vacation pay, insurance etc. A 1099 employee generally is not required to work stated hours, make up work, or get permission to be absent from the employment site. It sounds like you are not a 1099 employee but should be considered a W-2 employee. Contact the Utah State Department of Workforce Services and/or the IRS.

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Answered on 6/23/04, 11:08 am


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