The IRS assumes that a worker is an employee unless it can be proven that the worker is an independent contractor
Employers are required to send contractors (paid $600 or more a year) a 1099-MISC form showing total earnings for the year
Independent contractors must furnish a valid taxpayer ID number to the hiring company. (If the taxpayer ID is not valid or is incorrect, the hiring company is required to deduct backup withholding from the contractor's payments)
Because independent contractors are business owners, they must pay self-employment taxes on their earnings from self-employment. Self-employment taxes do not apply if the contractor is the owner of a corporation