Should I pay someone 1099 or W2?

By Ask a Shop OwnerUpdated Hiring

Short answer

If you control how, when, and where they work, they are W2 no matter what you call them.

The IRS test

The label on the paperwork doesn't matter. Control does. Set hours, your tools, your direction, only working for you means W2. Misclassification fines easily hit five figures.

Where 1099 fits

Real specialists. A CPA, a subcontractor on a single install, a designer for a logo. They invoice you, set their own schedule, and work for other shops.

Ask your version of this question

This is one business owner-tested take. Your shop size, trade, and team change the answer. Ask the exact version inside Ask a Shop Owner and get a response grounded in how owners like you actually handled it.