Employee vs. Independent Contractor: 1099-MISC or W-2?

Court case Peno Trucking: Appeals Court found that contracts that say workers aren’t employees can be disregarded in determining whether they are independent contractors. Instead, it is the degree of control that a company exerts over workers that determines whether they are employees or independent contractors. However, some exceptions may allow a company to still treat workers as independent contractors and avoid IRS penalties and back taxes.