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Marathon Growth Management

Do your 1099 Independent Contractors meet the IRS guidelines or should be employees?

How do you know the difference?



The determination can be confusing and therefore will depend on the facts and circumstances of each case. The determination is based on whether the person for whom the services are performed has the right to control how the worker performs the services. It's not based merely on how the worker is paid, how often the worker is paid, or whether the work is part-time or full-time.


There are three basic categories of factors that are relevant to determining a worker's classification:

  • Behavioral control (whether there's a right to direct or control how the worker does the work),

  • Financial control (whether there's a right to direct or control the business part of the work), and

  • Relationship of the parties (how the business and worker perceive the relationship).

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