In California, “1099 employees” is a term often used to refer to independent contractors who receive a 1099-NEC from the businesses they provide services to. This form reports non-employee compensation. These are individuals who provide services to a business but are not considered employees. They are self-employed, unlike W-2 employees, whose employers withhold payroll taxes. Independent contractors are responsible for paying their own federal and state taxes, including self-employment tax.
Common red flags that may indicate a potential misclassification of workers as independent contractors in California are: (1) if the company exercises a high degree of control over when, where, and how you perform your work; (2) if you do not engage in an independently established trade, occupation, or business; (3) if you Perform the same work as the employees of the business but without the benefits; (4) if you are being paid in a manner similar to employees; or (5) if the company provides equipment and reimburses expenses.
If you have been misclassified, you may be entitled to back pay for overtime, breaks, and other benefits. Seek advice from an experienced employment attorney who can guide you in your situation and help you claim the benefits you are entitled to.
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