1099

IRS: Independent Contractor or Employee?

The IRS test for classifying workers, plus what a 1099 filing actually requires of you as the payer.

In plain terms: This official IRS guide explains the rules for determining whether a worker is an independent contractor or an employee. Use it to understand tax obligations, classify workers correctly, or find forms to report a misclassification.

Why I recommend it: Misclassifying a worker is one of the most expensive small mistakes a new owner can make. Read this before you pay anyone.