LoraineG
Employee Tax Expert

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That all will depend in a couple factors.  Even if they pay him with a 1099, he might have been still considered an employee for worker's classification purposes.  There are several tests that IRS look at in order to determine the relationship between a worker and an employer. 

 

One of the biggest red flags for the IRS is that the person receives a W-2 and a 1099 for the same year.  But, again, it will all depend on a variety of factors like financial control, behavior, and the type of relationship.  

 

I would go and review these factors here:  https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

 

If this doesn't clarify your situation, then you may want to fill out a form SS-8 where the IRS is who determines his status as a worker. 

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