A 1099 employee refers to an independent contractor who works for a business but who is not a full-time employee of the company. An independent contractor is usually paid for work rendered by them and manages their own tax matters. Unlike a W-2 employee, a 1099 employee does not have the benefit of employee perks such as paid vacation or health care coverage through the employer. A 1099 employee can be working for one or multiple businesses, depending on their agreement. People who belong to this group include freelancers, consultants, photographers, writers and others who work for themselves. While there is a tendency to refer to such workers as 1099 employees, the correct term should be independent contractor, since an independent contractor is not really an employee.