Some studios offer work under independent contractor arrangements rather than hiring artists as employees. “1099” v. “W-2”. In most cases this is a bad deal for artists. Here are some facts:
The IRS has clear rules on classifying employees and contractors. It's not a decision you make - the nature of the work itself and the conditions are what determines things.
The IRS looks at three types of evidence to classify employees and contractors:
- Behavioral - if worker is provided with instruction, they’re an employee.
- Financial - if worker is paid by the hour or by the day, they’re an employee.
- Relationship - if a worker is doing tasks similar to other employees, they’re an employee.
- Overtime laws
- Meal breaks and rest periods
- Anti-discrimination laws
- Ability to collect unemployment when out of work
- Right to bargain collectively