The IRS considers "Non-employee compensation" reported in Box 7 of a 1099-MISC to be self-employment income, which is reported as business income on Schedule C of the recipient's tax return. For purposes of reporting that income, the taxpayer is considered a self-employed "business."
An employee receives a W-2, not a 1099-MISC.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
