← Remote Work Glossary

1099 Contractor

A US self-employed worker paid without tax withholding, responsible for their own taxes and benefits.

A 1099 contractor (again named after the tax form) is an independent contractor in the US: they invoice for their work, receive the full amount with no tax withheld, and must handle their own taxes, insurance and retirement saving.

Contracting can pay a higher rate but offers no employer benefits or job security, unlike a W-2 employee. Cross-border remote hires are often structured as contracts, or routed through an EOR.