W-2 or 1099: what is the difference in plain terms?

It happens, but the label on the form does not decide it. In the U.S. the IRS and your state look at the real relationship: how much control the company has over how, when and where you work, who provides the equipment, whether you bear the risk of profit or loss, and whether you can work for others. W-2 employee: the employer withholds taxes, pays its share of payroll taxes, and usually covers workers’ compensation and unemployment insurance. 1099 contractor: you pay self-employment tax, handle your own insurance and expenses, and carry the risk. If you are told to be a 1099 but you work under their direction with their equipment on their schedule, ask questions. You can request an IRS determination (Form SS-8) or talk to your state labor department. This is general information, not legal or tax advice. — CrewRating Team. General guidance, not a substitute for your company safety program, manufacturer instructions or the carrier’s scope of work. If this conflicts with them, follow them and tell us so we can fix it.