Chicoland is a corporation that works with agencies & brands to help them solve creative problems. The relationship is between your company and Chicoland: a business to business relationship, both on paper and in practice.
Some HR and Finance departments have been taking a one-size-fits-all-W2 approach with all types of contractors. Meanwhile, many of large, medium, and small agencies & brands have looked at the overall criteria and realized that 1099 is both the appropriate and accurate classification when dealing with corporate contractors.
Sometimes, we hear “but what if the duties are similar to job positions on staff?” And while an individual contractor on 1099 could be reviewed during a labor audit, a corporate contractor, by definition, cannot be an employee, and this condition does not apply.
It comes down to the three ways the IRS makes the determination: