NFL players are employees covered by a collective bargaining agreement negotiated by their union, the NFLPA, part of the AFL-CIO, which indicates specific different civil protections compared to an office job. On the next screen, "Report Your Wage Income," enter the employer's name and EIN from your W-2. It is effectively impossible with a Form W-2. In basic terms, 1099 contractors are self-employed, and you as the employer have no say over how the contractor works and are not responsible for withholding taxes. 95 percent. 1099 contractors rarely do. The self-employed pay twice as much Social Security and Medicare (FICA) taxes, because employers normally pay half. If them are looking for Are NBA players w2? or , click come! - DNA of SPORTS If you are looking for Are NBA players w2? or , click here! - DNA of SPORTS Two recent cases in the pharmacy space exemplify the risks of paying commissions to 1099 independent contractor marketing reps. Confirm all 1099 income from marketing/endorsement deals. Taxes. W-2 e 1099 são formulários de impostos usados para declarar renda, mas diferem nos tipos de renda que representam. The American Rescue Plan Act, signed by President Joe Biden back in March 2021, attempts to solve that. Employees tend to be more loyal to a company, you have more direct say over their day-to-day work, and as they gain experience, they can. You must issue her a w-2. Riley Adams, CPA and owner of Young and the. Online: You can e-file your 1099-NEC Form with the IRS through the Information Returns Intake System (IRIS) Taxpayer Portal. It is still very early. What information and copies does the W-2 require? Form W-2 has six copies: Copy A: employer sends to the Social Security Administration, or SSA; Copy B: employee files with the IRS for tax return purposesThe 1099 Form Used by CRE Players A 1099 form is used to report non-employment income and there are a total of 21 information returns or 1099 forms. 14 Replies VolvoGirl. A government worker. Taxes for W-2 vs. Popular competitions like World Cup, Champions League, Premier League, NBA, or NFL are supported as well as your individual. . Most sportsbooks and casinos will begin withholding federal taxes from your winnings on payouts of $5,000 or more. You can file 1099 forms and other 1099 forms online with the IRS through the Filing Information Returns Electronically (FIRE) system online. Welcome to our informative guide on purchasing a house with W-2 and 1099 income! Suppose you're considering buying a home and receiving payments from traditional employment (W-2) and self. . Riley Adams, CPA and owner of Young and the. If you want to make a career of it, you get much better benefits after 65 (almost double social security) plus much more to write off during tax season, so get a good CPA. Cons of being a 1099 contractor. W-2 employees sign an agreement for an extended period of time for ongoing employment, while 1099. Los trabajadores W2 no deben calcular su pago de impuesto por trabajo, porque las retenciones corren por parte del patrono o empleador. Caesars Palace - W2G Automated Tax Form. A 1099 employee earns their title from the 1099 tax form used for independent contractors who sign work agreements with a company. If you compare 1099 vs. For example, if a bettor had $10,000 in sports betting winnings in 2021, and $8,000 in losses, he could deduct. 65% FICA, but saves you income taxes in the form of a new 20% deduction for qualified business income (for single people earning less than $157k and married people earning less than $314k). This is a hot topic, but I believe it is self reporting. Players who earn tens of millions of dollars receive a 1099 tax form, which is amazing in itself. That math def doesn't check out. Organizers typically calculate players' net profits using a formula. The first step to correctly classifying your employees is to understand the difference between a regular employee (W2) and a contract employee (1099). Further, there is no promise of a certain number of hours, days, or years of work. For 2022, there are actually two of them: $0. 9% to Medicare. The reason is that the type of value you need is more about your long term compensation. You should not give her a 1099-Misc. Employers and workers fill out and file forms W-2 and 1099 in different ways. The next screen asks the source of the other earned income. Get a flat? They'll bill you for it for example. You have the 1099 and W9 backwards. You can add to that FICA and/or self-employment tax (15. Franchise dealers pretty much all take taxes out. , January 31, 2023 for wages/compensation paid in 2022). One of the primary functions of the W-2 and 1099 forms is to report income accurately. Small business taxes. If you go 1099 you’ll need at least a 30% pay increase, since the self employed taxes and the hassle of running your own business and accounting suck. We will issue a W-2G form each time a player has a payout of $600 or more (no reduction for the wagered amount) and a return that is 300X the amount wagered. What is a 1099 nurse practitioner? If you are not self-employed and you don’t have your own practice, you are either working as an employee or an independent contractor. Step 4: File Form 4852 with your tax return. It would be pretty tough to get a 49% raise, so this seems like a good move to me! Of course, that was assuming the billable rate was $100/hour. For the Reason Code select "H - I received a Form W-2 and a separate Form 1099-MISC and/or 1099-NEC and the income should have been reported on Form W-2. W2 employee so you can keep your business in the clear. Online: You can e-file your 1099-NEC Form with the IRS through the Information Returns Intake System (IRIS) Taxpayer Portal. In the end, Naomi takes home $13,509. However, simply providing a worker a 1099 Form doesn't make them an independent contractor. As a 1099 independent contractor, you are self-employed and unable to access the benefits your agency offers regular employees. Really? — Wisdom for Women (@wisdomforwomen) February 5, 2017 Uncle Sam might not ask for anything more than a W-2 from Americans who only work for one company, but pro athletes rarely have that luxury. Requirements and penalties. Click “1099-R Summary” under My Payroll Information. I know that brokers do their own thing in terms of W-2 or 1099, but some states have specific laws regarding this issue. Are NFL players w2 or 1099? maintains the licensing contracts for NFL trading cards, video games and selected other items. This is a free filing method that allows you to electronically file your 1099-NEC Form, as well as apply for extensions, make amendments, and more. In Box 15, there might be a state abbreviation, such as IL for Illinois, and then the State ID Number for the company that issued the w2 or 1099. (FL) LMHC. That is, social security tax is 12. If you receive multiple W-2G. When an individual performs services that are controlled by you, and you are the one. W-2 Employees. Form 4852 is a substitute for Form W-2 that taxpayers can complete if: They haven't received a W-2. Running a music business likely requires certain monthly expenses, and you can claim these as deductions to reduce your tax liability. The same is true for professional athletes in other leagues. Our W-2/1099 software supports up to 1,999 payers and up to 99,999 recipients per payer. This is federal, not state based. 3% combined employer/employee on the first $128,400, then essentially dropping to 3. By January 31, the W-2 employee receives a Form W-2 that includes information around taxable compensation, tax withholdings, and any additional tax deductions for employee benefits such as employer-sponsored health coverage or 401(k) plans. For the same income; and relatively low expenses, is it better to be on W2 or 1099. Key Takeaways. Those sites should also send both you and the IRS a tax form if your winnings exceeds $600. If any taxes on your winnings have already been withheld, make sure to report that on the 1099 or W2-G. under the terms of an agreed-upon “statement of work” for an independent contractor). Other forms—1099-MISC, 1099-R, 1099-G, 1099-K, and W-2G—are due March 31 of the following year. A good rule of thumb is the 60/40 rule. Poker tournament winnings are more than $5,000. Use the images attached to help finish your entry. The Difference Between a 1099 and W-2 Employee. You do not pay any Social Security tax on your self-employment income if you already earn wages in excess of the wage base limit. 585 from January to June, and then $0. @Mansfield's answer agrees what with I know about NHL paychecks - 13 paychecks, paid biweekly during the season. If you take home a net profit exceeds $600 for the year playing on websites such as DraftKings. Fewer costs associated with utilizing 1099 work means that these workers can often command higher prices for similar skills or tasks. ago. Make sure it's actually $50 EXTRA and not just the $50k which would be withheld from your W2 paycheck, but in a 1099 situation you have to set aside yourself for taxes quarterly. When you are in the Document Center section, you should be able to see a 1099 form. The whole nine yards. 1. From the Unemployment Insurance Benefits Online page (below), under the “Get your NYS 1099-G” section, select the year you want in the NYS 1099-G drop-down menu (box with an arrow), and then select the “Get Your NYS 1099-G” button. 65%) and then withholds the other half from W2 employee paychecks. Bonuses from banks or manufacturers and independent dealers use 1099s. They may offer a retirement match (3-10%). The AFC South is the most tax-friendly NFL division. You should not do 1099. Pros of W-2 vs 1099 for employers and employees. For example, if your 1099 shows $30,000 in gross income but you have $10,000 in business expenses, your net income will be $20,000. Also, terminating a work arrangement with 1099 employees is a lot simpler compared to their W2 counterparts. C. The TurboTax program is having difficulty reading a State ID Number. Independent contractors receive 1099 forms rather than W-2s as a record of income earned. ; Form 1099R reports. This means that a player contributing $10,000 will immediately have $30,000 in his 1 Answer. The IRS requires each payment settlement entity to send you a Form 1099-K by January 31 to business and individuals that surpassed the threshold for the year. Quarterly taxes HURT. No Social Security tax at all on your self-employment if you are already over the wage base. Each type is used to report a different kind of payment or transaction, including income earned as an independent contractor. Human resources professionals,. In this two-part tax, 12. splitting that cost 7. Receive Your 1099: No later than January 31, 2023: No later than January 31, 2024: File Your Tax Return: Tuesday April 18, 2023 (15th is a Saturday; Monday is Washington, D. 65% (i. Are NFL players w2 or 1099? These additional wage amounts are paid after the end of the season. W2 workers can confuse a lot. In barbering the biggest single thing I can point to is if you booth rent, than you are an IC. Employment tax, such as Medicare taxes and Social Security taxes, amount to approximately 15. As an employee, you receive a W2 at the end of the year, you’re paid on a regular payroll, and taxes are taken out of that. A good rule of thumb when comparing W2 vs 1099 offers is that you want to make AT LEAST 50% more on your 1099. In addition, W-2 workers pay less in FICA taxes. Poker tournament winnings are more than $5,000. Learn how to leverage group player rights and get access to 2,000+ NFL players for licensing and marketing opportunities. Payroll taxes. W2 employees only pay 50% of these two taxes - the employer pays the other 50%. Here are a few of the advantages you'll have as a 1099 contractor: You get to deduct 1/2 of your self-employment tax. As an independent contractor, you receive a 1099. 3. Loan Out Corporations enable entertainment professionals. W-2 employees typically do this via withholding; 1099 contractors do this via quarterly payments of estimated tax. All you need to know to get ready for the 2023-2024 NFL and College Football Season!You will need your Social Security number or tax ID number, dependent information (if applicable), the forms that document your sources of income (W-2, 1099, 1099-K, 1040, etc. 1099 as long as I’m getting at least 7. So if you're hurt while working, you get medical care as a W-2 but not as a 1099 contractor. W2 vs. Just make sure you accurately report all income shown and no problems should. ). Then, you multiply each mile by a standard amount set by the IRS. W2G automated tax forms are available for members playing at the High Limit Slots in Caesars Palace. Everywhere I've ever heard about is a W2 job and then, in some cases, a 1099 that comes from the manufacturer. As a 1099 contract worker you will have to pay 15. To report wages from a W-2: Click on Federal Taxes > Wages & Income. The biggest distinction between a W-2 employee and 1099 worker is the amount of control you have over them. Otherwise, be an employee with a W2. Social Security Tax (FICA): Social Security tax is withheld at a rate of 6. 5. In the same way, the IRS uses the W-2, the 1099-MISC form informs the IRS of how much a company paid a contractor. So it is pretty clear that the 1099 is the better opportunity in terms of pay. Awkwrd_Lemur. This means that our software tools are great options for users with multiple businesses, or perhaps accountants who oversee multiple entities. A lender would send you a 1099-C if they canceled any remaining mortgage debt after the foreclosure. This means that, unlike a W2 employee, the business does not dictate certain terms of work for this particular worker. gov. These guidelines consider factors such as: The level of control the employer has over the work. Before using Form 4852, get in touch with your employer or payer and request that they amend your Form W-2 or 1099-R if it needs to be updated. 6% on income over $413,200, amounting to tax due from Mayweather of about $120 million, barring any tax deductions he could claim. Taxes are not usually withheld by the payer for 1099 forms. . Form. • You’re required to report all of your gambling winnings as income on your tax return, even if you end up losing money overall. How to add this in Turbotax. If you are unable to locate your CSA or CSF claim number, or you are not a retiree, former spouse of a retiree or a survivor of a retiree, or you are inquiring about the status of a refund application, please contact us onOver the years, I have accumulated a set of questions that I usually ask the placement firm about a contract or consulting position (W2 or 1099) that I am looking at taking. November 30, 2021. Any combination is possible; however, boxes 3 and 5 are most often the same and box 1 can be lower than 3 and 5. ), and receipts for. The self-employed pay twice as much Social Security and Medicare (FICA) taxes, because employers normally pay half. With a W-2 employee, you have the right to direct the work being performed. When you start working for someone you either give them a W4 (employee) or a W9 (contractor/vendor) to indicate your tax information. Learn the difference between a 1099 vs. 8% thereafter), so figure that your high profile athletes in the U. For starters, one of the main benefits of hiring a 1099 contractor is that you generally assume a lower legal risk when using the services of a 1099 worker. 1099-K: Profits made from merchant payments. In contrast, 1099 workers are independent contractors and maintain more control and flexibility in their work methods. It gives a comprehensive overview. So it would be impossible for the 250K 1099 job to pay more than the 400K W-2 job. Yes, you will pay more in taxes if you choose 1099. c. Understanding what a 1099 commission-based. Nannies are legally classified as household employees and should be receiving W2s. As a 1099 making 200k a year, you’ll be able to. 7. Here are a few of the advantages you'll have as a 1099 contractor: You get to deduct 1/2 of your self-employment tax. I received a W2 from my employer for my normal salary. Depends how good the benefits are as W2. For your church, your to-do list must include year-end payroll duties. W-2 Employees. NFL players are considered employees under the FLSA. Based on my research so far, I understand that if I go for 1099, I am responsible to pay for Social and medicare taxes, but at the same time, I have freedom to select the correct health insurance plan and reimburse along with other work expenses. The 1099-MISC reported amount is the amount attributable to the attorney fees amounts and other settlement fees. Donald Ferguson On the surface, an NFL player's tax status appears to be similar to that of the majority of individuals. Pros of W-2 vs 1099 for employers and employees. After the rookie season, NFL teams will match the first $10,000 of player 401 (k) contributions at a 2:1 rate, up to $20,000. Check out the 1999 Atlanta Falcons Roster, Stats, Schedule, Team Draftees, Injury Reports and more on Pro-Football-Reference. 1099 means you are considered an independent contractor, and you will be responsible for not only income taxes, but self-employment taxes (Medicare and social security, aka FICA). You should not give her a 1099-Misc. The main difference between W2 and 1099 workers is that a W2 is a payroll employee and a 1099 is a non-payroll worker. Even if you are not self-employed or own a small business, you can still get a Form 1099-K. Reporting Income. I've been reading up on the…If you are on a 1099, you have to pay self-employment tax, while on a W-2 you do not. This is a free filing method that allows you to electronically file your 1099-NEC Form, as well as apply for extensions, make amendments, and more. Once a professional athlete has signed a contract with the team, financial planning, income tax. Self-employed folks will typically pay all 15. The W-2 employee then uses this information to complete their yearly taxes. 65%. A statutory nonemployee. Harvey Bezozi | May 24, 2018 In a recent article, I examined some of the potential impacts of the Tax Cuts and Jobs Act of 2017 on professional sports teams and team owners. MLB players file 20 to 25. Due to the uncertain nature of the period of stay. Many employers refer to independent contractors as "1099" and employees as "W-2" workers after the IRS forms used for reporting purposes. Fantasy sports players who win more than $600 generally get a Form 1099-MISC, or 1099-K, depending on how the money is paid out. W-2 workers are the most common type of workers in the United States. 1099 has all the benefit to the employer and non to the "employee" They get to skip out on all sorts of insurance, taxes, and benefits. In contrast, NFL paycheck distribution is simpler. Independent contractors, like freelancers and real estate agents, in the U. Each type is used to report a different kind of payment or transaction, including income earned as an independent contractor. From the Unemployment Insurance Benefits Online page (below), under the “Get your NYS 1099-G” section, select the year you want in the NYS 1099-G drop-down menu (box with an arrow), and then select the “Get Your NYS 1099-G” button. For the latter, the two most common forms used are 1099-NEC. Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B. Form W-9 is used to gather information about a contractor (like name, address, and Tax ID/SS number) so their earnings can be reported at year-end. As an employee, you receive a W2 at the end of the year, you’re paid on a regular payroll, and taxes are taken out of that. What is the difference between a W-2G and a Win/Loss statement? A W-2G is a tax form provided for winnings of $1200 or more. CompleteCheck™ scans your return so you can be confident it’s 100% accurate. Philadelphia 76ers Premier League UFC. Jan 31, 2015. Taxes. Machine Jackpots). Let’s take a look at Naomi’s results. Next you need to get all the facts about this job from your boss and make a definitive determination as to whether you are going to be a contractor taking care of your own taxes or if you are an employee. • You may receive a Form W-2G, Certain Gambling Winnings and have federal income taxes withheld from your prize by the gambling establishment if you have qualifying winnings. W2 and 1099-NEC are tax information forms that the Internal Revenue Service (IRS) requires businesses to prepare and file annually to report payments made to different types of workers. I am sure you are aware that an 'employer' paying you as a 1099 is just to avoid taxes and certain responsibilities such as workers compensation. 5% more money to cover the extra taxes. Read on to learn more about why 1099 employment is not great for the best companies. Form 1099-MISC from irs. Another way to calculate this is:You will pay more taxes as a 1099 worker because you pay both the employer and employee portions of payroll taxes, including Social Security and Medicare. The form reports the interest income you received, any federal income taxes. The same goes for termination. They pay. NFL NBA Megan Anderson Atlanta Hawks Los Angeles Lakers Boston Celtics Arsenal F. Whether or not certain federal and state labor and employment laws apply. : Players Inc. A 1099-MISC is used to report payments made to independent contractors (who cover their own employment taxes). What information and copies does the W-2 require? Form W-2 has six copies: Copy A: employer sends to the Social Security Administration, or SSA; Copy B: employee files with the IRS for tax return purposesTicketmaster is required to file a Form 1099-K report with the IRS when the gross revenue received from transactions on our U. However, depending on the how your winnings are classified with the payer, you may receive Form 1099-MISC. Now let’s take a look. How and when someone gets paid (hourly or salary on a set basis for an employee vs. Which gives them more profit. In general you want your 1099 rate to be at least 30% more. Fantasy sports organizers must figure out players' net profits in order to determine who gets 1099 forms. The. Dividends for Adults are taxable for federal income tax purposes. Employees use this information to prepare their annual tax returns. Hi r/Tax ! Like title says, I'm a "current" W2 employee thinking of changing to 1099 (which I can do at any time). Is the W-2 job $400K a year plus benefits or is are the benefits included in the $400K and, it's a $400K package with a take home salary of like $250K Either way $400K a year either W-2 or 1099, I would think is a pretty solid salary for these times. a contractor will fill out a W-9 form. 1099: Employee differences . W2 vs. splitting that cost 7. As A W2 employee the employer has to pay workers comp and roughly half of your social security and. FICA taxes refer to the Federal Insurance Contributions Act. States have collected hundreds of millions in gaming taxes since the Supreme Court overturned the federal ban on sports betting a few years ago, and the IRS wants its fair share. Depending on the amount of the dividend, your child’s dividend may be taxable. For those who thrive in team environments and enjoy the social aspects of work, switching from a 1099 status can be a positive move. So checking with this group, if you have any pros/cons in going with W2 vs 1099. Nonprofit Explorer includes summary data for nonprofit tax returns and full Form 990 documents, in both PDF and digital formats. 4%. W-2 income Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EIC) Child Tax Credit (CTC) Student loan interest deduction Situations not covered: Itemized deductions Unemployment income reported on a 1099-GIf you are an annuitant, you can find your CSA or CSF claim number on your 1099-R, your annual COLA notice or your Benefits Booklet. The W-2 reports your gross wages and federal and state income tax withholding from your job. Players Inc. And 1099 is simply a form that goes out at the end of the year. Step #9. 65% (i. If you have not received your Form W-2 or Form 1099, please contact your employer to learn if and when the W-2 was delivered. Currently 1099 as wife is W2 for family insurance. According to the IRS, there may be times when a person works as both a self-employed and an employee for the same company. Your choice determines if their tax information is reported with a W-2 or 1099 form. So in your case I wouldn't accept the 1099 unless they. The NFL does not withhold employment taxes from its owners. Sam McQuillan. Employees use this information to prepare their annual tax returns. Players Inc. Team sports tend to be employees, individual sports (tennis, golf, etc) are 1099s. You could take the job as a 1099 contractor, create an LLC, and then file Form 2553 to have the LLC files taxes as an S Corp. This is a 49% increase in compensation. : Players Inc. are going to incur Federal taxes of around 40 cents per dollar of ordinary income. The only difference is that as a W2 employee, your employer withholds some money out of each of your paychecks and sends it to the IRS on your behalf, and as a 1099 there's no employer withholding so you have to send estimated quarterly. Royalty checks are paid in September or October, and are reported to the player on Form 1099. Here's a brief on what is W2 Contract and Corp to Corp with the difference in W2 vs C2C. The value of these items is reported as income on Form. If you are considering growing your team, you may wonder if you should hire a W2 employee or a 1099 contractor. Since it was a part of your employment, though, I think it most likely ought to be reported on Form W-2; better yet it might have been better handled if Employer B had paid you the bonus from. S. Since Uber provides this information directly to the IRS, you don’t have to include the 1099s forms with your tax return. In the first case, Monty Grow (a former NFL player) was recently convicted by a Florida federal jury of receiving kickbacks to steer patients to a compounding pharmacy that, in turn, billed TRICARE for compounded drugs. An independent contractor. chrisharrisonslawyer • 2 yr. Launching and maintaining your music business usually involves paying some basic. Your employer pays for malpractice and the employer part of income taxes. "If you're an employee of a trucking company and receive a W-2 at the end of the year, unfortunately, none of your job-related expenses are tax-deductible. They use this form to file their personal income tax return, which is due on April 15 of the following year. Employers must send out W-2 forms to their employees no later than the said date. Most contractors are hired “at will,” meaning it’s at the behest of the employer whether or not they stay on the job. While both have their advantages, the best option is to focus on hiring employees who are W2-qualified. Now let’s take a look. " Ignore the note that says not to enter compensation for which you will receive a 1099. High-paid players can make more than this, but most fall somewhere in the middle. Just fill out the W9 and worry about the 1099 if you won too much (good problem to have). An employee who obtains a W-2 tax form from their employer is known as a W-2 employee. How and when someone gets paid (hourly or salary on a set basis for an employee vs. 2. IRS - see page 9 So all the talk about contracts and the tax rates of different NHL cities got me curious about the tax status of NHL players (and, by extension, players in other sports). The primary distinction between W2 vs 1099 workers lies in their employment relationship. Self-employed folks will typically pay all 15. YOU ARE AN EMPLOYEE AND SHOULD RECIEVE A W2. The W2 reported amounts are the back pay portion and include the appropriate amount of tax withholding. ; In the Wages and Salaries section, click on the Start/Revisit box. ago • Edited 9 mo. When you are a 1099, you pay both halves of the FICA taxes 15. Most NFL players maintain a contract with a shoe company which provides for a limited amount of clothing/shoes/etc. Pros of the 1099: Cost Savings: 1099 contractors are typically less expensive than W2 employees. Our tax software supports the W-2 and 1099 forms that you will need for your employees and makes it easy to upload those documents and keep them secure. W2 vs W9 vs 1099 Contractors: Tax Rates. Brock Osweiler’s 2016 tax filing was about as simple as you can get for an NFL player: With the Texans he played home games in. Anyone with any information on this would be super helpful! Colorado itself allows 1099. Filing a W2 and 1099 in the Same Year Can Seem DifficultThis video will take you through the W-2 and 1099 forms that are sent to you by your employer and used to file your taxes. Technological innovations, a changing employer-employee relationship, and the rise of independent workers are just a few of the big trends shaping our evolving workforce landscape. Caesars Palace - W2G Automated Tax Form. For most workers, a W-2 or 1099 is just a piece of paper they get at year-end to file their tax returns. If you win money betting on sports from sites like DraftKings, FanDuel, or Bovada, it is also taxable income. They must pay federal income tax, just like everyone else, but at a far higher rate of 41. W2 employees have a full-time job with the company, and benefits often come with that position. W-2 income Interest or dividends (1099-INT/1099-DIV) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EIC) Child Tax Credit (CTC) Student loan interest deduction Situations not. You can contact the IRS at 800. Otherwise, be an employee with a W2. 1099-NEC. If she is under 18, you do not have to withhold FICA. ToastNeo1. More commitment. Level 15 Mark as New; Bookmark;What is a 1099 nurse practitioner? If you are not self-employed and you don’t have your own practice, you are either working as an employee or an independent contractor. Since you’re now self-employed, your income will be subject to the self-employment tax. I explained to the Executive VP who made this decision, that according to the IRS, the criteria for being an employee is the work is done with supervision and with the employer’s materialsBelow are the four main types of 1099 forms.