What is 1099 Contractor?

Last updated 2026-10-22

Short answer

A 1099 contractor is an independent contractor paid directly without tax withholding who receives a 1099 form for the year.

1099 Contractor is a term you will meet constantly in IT staffing. This page explains what it means, how it appears in postings and emails, how a staffing team uses it and the mistakes to avoid.

In practice

The contractor pays self-employment tax and covers their own insurance. Whether a worker can be classified as a 1099 contractor depends on the facts of the working relationship and the law, so get professional advice.

How it shows up in a posting

“1099 not accepted” in a posting tells you the client does not allow independent contractors.

Common mistakes

  • Treating 1099 and C2C as the same thing.
  • Submitting 1099 candidates to clients that exclude them.
  • Setting classification policy without advice from an attorney or accountant.

Where this fits in a staffing workflow

Most of the day-to-day work around this term is finding the right requirements and getting a clean submission out quickly. MatchWire automates the sourcing, matching and resume tailoring steps and leaves the judgment calls to your recruiters.

Frequently asked questions

Do all clients accept 1099 contractors?

No. Many clients do not allow 1099 engagements, so check the posting and confirm with the client.