In layman’s terms, the question is often “Do I W-2 this person or 1099 them?”  We have to ask, is the individual performing work on behalf of a company, an independent contractor, or an employee?  It’s an age old discussion we, as many HR professionals and accounting/bookkeeping personnel have had with employers over the years. The real question to the government is, “Do I get my payroll taxes upfront, or can I trust this ‘independent contractor’ to pay his income taxes?”  Again, this is perhaps oversimplified, but it is indeed the essence of the issue.