A 1099 employee tax form is used for workers that are considered independent contractors. These individuals are not technically employees of the company and do not have federal taxes withheld from their paychecks. They are required to file a 1099 form with their annual taxes.
There are three main criteria to determine whether or not a worker should be classified as an independent contractor. The first is if there is any control over how the worker completes their tasks. The second is if the worker has any control over the business side of the work. The third is how the relationship is perceived between the company and the worker.