What is a W-2 or a 1099?

You are treasured

At TalentWave, we feel privileged to work with Independent Contractors (ICs), outsourced W-2 employees and approved vendors. Our economy is thriving, in part, because of the valuable contributions of flexible workers who lend their expertise to important projects at just the right times.

If you’re new to the world of independent work, you may be hearing some unfamiliar labels tossed around. You’ll want to know the differences between workers who receive a W-2 and those who receive a 1099 form for tax purposes.

Outsourced employee (W-2)

A worker who receives a W-2 tax form from a company has to work defined hours at a specific location and usually works for just one company. They may have to follow specific employer instructions and often use company equipment.

These workers are generally paid a regular wage or salary, provided with benefits and have taxes deducted from their paychecks. Their jobs are integral to the employer’s core business.

TalentWave engages these types of workers on behalf of our client companies. We become their Employer of Record (EOR) which means we take care of W-2 employees as if they were our own. We provide benefits, issue payroll and ensure all necessary forms are completed for each worker.

Independent contractor (1099)

Independent contractors who receive 1099s usually work for themselves, get to do their jobs in flexible work environments and typically use their own equipment. They are engaged because they are subject matter experts and have knowledge that can benefit a short-term project.

This type of contractor routinely works for more than one client. They often choose this kind of work situation because they prefer the flexibility of working on the types of projects that interest them the most and want to be their own boss. They are usually paid when project milestones are reached.

TalentWave acts as the Agent of Record (AOR) for these contractors on the behalf of our client companies. We verify that every contractor is qualified to be an IC and gets paid correctly and on time.

Talent and companies trust TalentWave

TalentWave understands the world of independent work. We value all flexible workers and their unique contributions to the workforce.

We take care of contractor needs, alleviate risk and keep things running smoothly to the benefit of both companies and the workers themselves.


Flexible Workers
TalentWave deeply values your contribution to the workforce. You enjoy the flexibility that comes with being a part of the gig economy and employers appreciate your unique expertise and skills. TalentWave makes the contracting process clearer and easier for our client companies to safely engage with awesome talent like you! Our client services team and our technology platforms help create a streamlined path to complete onboarding while assisting you every step of the way.