1099 employees are freelancers or self-employed workers; the term originates from the 1099 IRS form used to report income paid to independent contractors. These are people who are not considered to be employees of an organization, but who are hired just to perform specific tasks or services. These tasks could be anything from graphic design or catering, but what all 1099 work has in common is that it is done on the employees’ own schedule. One of the defining characteristics of a 1099 employee is that they control how and when they complete tasks versus being asked to do so in certain ways and at certain times by employers. Other factors that distinguish 1099 workers include the level of control the hiring entity has over the employee, the type of work being performed (1099 employees are usually hired for specialist skills), and the permanence of the working relationship. If a contractor received benefits, this also wouldn’t be classed as meeting 1099 criteria. Unlike full-time employees, 1099 workers are responsible for managing their own taxes. This means they pay both the employer and employee portions of Social Security and Medicare taxes as well as any applicable local and specialized taxes. When paying a 1099 worker, you need to provide them with a 1099-NEC (Non-employee Compensation) form if you’ve paid them $600 or more during the tax year. This details the total compensation you’ve paid and is also sent to the IRS for tax reporting. You don’t need to withhold or file taxes, unemployment insurance, or business expenses. If your contractor has already established their own C-corp or S-corp, you don’t need to provide them with a 1099 as they will be considered a separate business entity. Instead, you may need to provide them with a Form W-9, which is used to collect their taxpayer identification number (TIN).
Cross-Training
What is Cross-Training?
Cross-training refers to the practice of training team members to perform multiple roles or tasks outside of their usual responsibilities. This approach is commonly used in business environments to increase operational flexibility and staff adaptability. It enables employees to learn different aspects of a business, contributing to a more versatile workforce.
Implementation and Benefits
Cross-training involves teaching an employee the skills and responsibilities of a different position within the company, typically one that is related to their current role. This can be achieved through various methods such as job rotation, mentoring, and participation in special projects.
The primary benefits of cross-training include improved employee engagement and job satisfaction, as it breaks the monotony of routine and provides valuable new skills. For the organization, it creates a more flexible and resilient workforce that can better adapt to staffing changes or unexpected absences. It also fosters a deeper understanding of the company operations across the workforce, which can lead to more innovative ideas and collaboration across departments.
Strategic Importance
Cross-training is especially valuable in industries where the work is highly specialized, and the absence of a single employee can halt operations. By cross-training staff, companies ensure that critical tasks can always be covered, thereby reducing downtime and maintaining productivity even in challenging circumstances.
Cross-training is a strategic tool that enhances the skill set of individual employees and strengthens an organization’s overall operational capability. By investing in cross-training, companies can foster a more engaged, efficient, and resilient workforce ready to tackle a wide range of challenges.
Employer of Record Platform
Build your global team in 150+ countries with our best-in-class EOR