Free Agent vs. 1099 Worker

Free Agents, in their efforts to plan and direct their own careers paths, have several options about how to be paid when they accept assignments from employers. These will be addressed in comparison to the status of 1099 Independent Contract workers.

When an Independent Contractor chooses to become a 1099 worker, he or she has to apply for that status by completing IRS Form SS 8 - "Determination of Employee Work Status for purposes of Federal Employment Taxes and Income Tax Withholding with the IRS". As part of applying for 1099 status, applicants must answer a 20-question qualification test that satisfies the IRS requirements regarding the nature of the Financial and Behavioral Control that the employee is under when working for an employer.

Once these professionals obtain this status, they tend to stay in this type of work arrangement for the duration of their professional careers within their chosen fields. They pay their own taxes, insurance and benefits or hire back-office support to take care of these administrative functions. Once "liberated," independents generally don't re-enter the world of the W-2 payment arrangements.

Free Agents can certainly choose this 1099 option when considering assignments if the employer is willing to enter into this type of arrangement. They can also choose to work as temps, contractors, or for salaried or hourly wages. They also have the option to incorporate, although this doesn't appear to be a popular choice. Free Agents want to be more flexible in their work life. Their goal is to maximize the opportunity to gain a great breadth and depth of experience and skills. They're subject to the same IRS regulations and administrative burdens if they choose the same route as the Independent Contractors. They may find this a less attractive option, as they seem to shy away from wanting to "be the boss" and prefer being the jacks of many trades.