What is a 1099 contractor?

Question

What is a 1099 contractor?

Answer 1

See irs.gov for best explanation:

http://www.irs.gov/businesses/small/arti...

It's someone who is NOT an employee.  No taxes are withheld and all tax issues are transferred to the contractor.  He/she becomes responsible for everything.  How the work is done, the tools, etc.  No vacation, no sick leave, no insurance, no unemployment.

Answer 2

An independent contractor who is responsible for paying his own taxes.  If a company uses an independent contractor then the company sends the contractor a 1099 form at the end of the year instead of a W-2.  The 1099 shows how much the company paid the contractor.  The company does not withhold taxes so it's up to the contractor to pay his own taxes.  He should make estimated payments to the IRS using a form 1040-ES.  You can find this at www.irs.gov.  Then when the contractor files taxes he has to file a Sch. C and a Sch. SE.  Those are also on the irs website.