Dont mess around with this-it can bite you...HARD! 1099's are for those companys that might do work for you, under their company name, under their license/insurance, using their tools/equipment, etc. w2's are for those folks that work directly for you. Thay do what you tell them to do. They use your equipment to do the work. They show up where you tell them to show up and when you tell them to show up. They work under your work comp insurance. Bite the bullet on this subject--fines and red tape will cost you big!