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Types of Projects – 1099 vs. W-2

When it comes to worker classification, the overriding determining factor is the type of project you will be working on. If you are identified as a candidate for a consulting opportunity, we will cover these classifications in greater detail and how they pertain to the task at hand.

Here is a brief overview of the two different categories into which our projects fall:

In general, consulting opportunities which are project based, with clearly defined deliverables, will be Independent Contractor opportunities. For example, if the goal of the project is to create a white paper, develop a strategic plan, or conduct competitive analysis, and we are able to define these as specific deliverables, then we are usually able to classify the project as IC. Consultants on such projects will work on a 1099 basis – the consultant will invoice Crimson directly against predetermined project milestones and deliverablesTemporary Employee (W-2)

If an opportunity requires you to work onsite, follow schedules and priorities set by the client, and work on a variety of tasks (which could change regularly), it will most likely be classified as temporary employee. Consultants on these projects will work on a W-2 basis, and get paid through a third-party payroll service.