Am I a W-2 employee or a 1099 independent contractor? (US)

Applies to: US workers. In Canada? See Am I a T4 employee or a self-employed contractor? (Canada). For the country-agnostic overview, see Am I an employee or an independent contractor?

Your classification — W-2 employee or Independent Contractor (1099) — determines how your taxes are handled and which year-end tax form you receive.

The two classifications

W-2 employee

A W-2 employee is an individual employed directly through a company or employer of record. Ascen acts as the employer of record for W-2 workers placed through staffing agencies.

What this means for you:

Taxes are withheld automatically. Federal income tax, Social Security, and Medicare taxes are deducted from each paycheck before it reaches you. State and local income taxes are also withheld based on your work location and the W-4 (and any equivalent state form) you completed during onboarding.

Your employer pays a share of payroll taxes. You and your employer each contribute to Social Security and Medicare — you are only responsible for your half.

Year-end form: W-2. Each year, you receive a W-2 that shows your total wages and the total taxes withheld. You use this form when you file your personal income tax return. Official reference: Form W-2 (IRS)

Independent Contractor (1099)

An Independent Contractor provides services under a contract, rather than as an employee. On the Ascen platform, Independent Contractors may complete a W-9 and sign a contractor agreement during onboarding.

What this means for you:

No taxes are withheld. You receive your full contracted pay — no federal, state, or local income taxes are taken out automatically.

You are responsible for your own taxes. Because nothing is withheld, you are generally expected to make estimated tax payments to the IRS (and your state, if applicable) throughout the year. Many Independent Contractors do this quarterly. A tax professional can help you estimate the right amount.

Self-employment tax applies. Unlike W-2 workers who split payroll taxes with their employer, Independent Contractors pay both the employee and employer portions of Social Security and Medicare taxes (together called self-employment tax).

Year-end form: 1099-NEC. If you earned $600 or more during the calendar year, you will receive a 1099-NEC (Nonemployee Compensation) form. You use this form when you file your personal income tax return. Official reference: Form 1099-NEC (IRS)

How to find out your classification

Your classification is set when your assignment is created — you cannot change it yourself. To confirm which classification applies to you:
1.

Log in to your portal at app.ascen.com.
2.

Check your onboarding documents or agreements — your employment or contractor agreement will state your classification.
3.

Look at your pay stubs under Paychecks: W-2 workers will see tax withholding line items; Independent Contractors will not.

If you are still unsure, contact Ascen at support@ascen.com.

Summary at a glance

For the IRS's official guidance on how workers are classified, see: Employee vs. Independent Contractor (IRS)

A note on tax advice

Ascen does not provide tax advice. The information above is general education. If you have questions about your specific tax situation — such as how much to set aside, whether to make estimated payments, or how to file — please consult a qualified tax professional.

Related articles

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Am I an employee or an independent contractor? (all countries)

Am I a T4 employee or a self-employed contractor? (Canada)

How do I fill out my US contractor tax form (W-9)? / When will I get my 1099-NEC? (US ICs)

How do I view my tax documents (W-2s, 1099s, 1095-Cs)?

How do I fill out my US tax forms (W-4)?