---
title: "What Is 1099 Independent Contractor? Definition | Epic Life Glossary"
description: "A 1099 independent contractor is a worker who is paid for services without taxes withheld and who receives Form 1099-NEC rather than a W-2. The worker..."
url: https://epicline.preview.multisites.ai/glossary/1099-independent-contractor
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
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---

Compensation

# 1099 Independent Contractor

A 1099 independent contractor is a worker who is paid for services without taxes withheld and who receives Form 1099-NEC rather than a W-2. The worker runs their own business.

## Why it matters

Many insurance agents work this way. They pay self-employment tax, track expenses, and often make estimated tax payments. The IRS looks at behavior, finances, and the relationship to decide worker status. Agents should talk to a tax professional about their own situation. Because the agent is not an employee, benefits like health coverage and retirement plans are the agent's own responsibility.

Source: [irs.gov](https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee)

[Read next, for agentsHow do life insurance agents get paid? An honest breakdown](https://epicline.preview.multisites.ai/careers/compensation)

## Where we use this term

-   [Captive vs independent insurance agent: who owns your book?](https://epicline.preview.multisites.ai/guides/captive-vs-independent-agent)
-   [Start an insurance agency with Epic Life: how ownership works](https://epicline.preview.multisites.ai/careers/agency-ownership)
-   [Switching IMOs: what experienced agents should know](https://epicline.preview.multisites.ai/careers/experienced-agents)
-   [How to become a life insurance agent with no experience](https://epicline.preview.multisites.ai/careers/new-agents)

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