From that other thread.... As per our leader MannDude: contract workers vs real employees and general labor laws applicable to the web hosting industry ---------- So, contract work status 1099 is second in the a big chunk of the web hosting segment maybe only behind straight cash/trades of services for work. Group input and general rules anyone in these parts uses to determine tax/employee status (specific to United States, although likely similar in many countries). When do you call someone a contractor versus when do you call someone an employee? We are speaking about tax status here, not letterhead/biz card titles bandied about for corporate image inflation. No legal way, at least normally that say a Vice President of a company could be a 1099'd consultant.