Learn more about independent contractors here: What’s the difference between an employee and an independent contractorĪdd independent contractors that require a 1099 tax form in Wave. If you’re unsure whether a worker is an employee or an independent contractor, you can submit Form SS-8 to the IRS for an official designation. Some examples of roles like this are consultants, personal trainers, and real estate agents. Independent contractors are the ones who control how works get done, provide their own tools, and pay their own taxes. They help your business complete certain predefined tasks and in exchange you pay them an agreed upon amount for their work.įor employees, the employer is the one who controls what work must be done, pays taxes on the employees’ behalf, and covers operating costs, amongst other things.
In practical terms, independent contractors aren’t that different from employees.
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