Calling someone a 1099 contractor does not make them one. Washington agencies decide based on how the relationship actually works, and different agencies apply different tests.
Two agencies, two questions
- Employment Security Department (unemployment insurance): applies the exception tests in RCW 50.04.140. The worker must be free from your control and meet the independent business criteria to be treated as a contractor.
- Labor & Industries (workers' compensation): starts with a personal labor test. If the worker does not pass it, L&I applies a 6-part or 7-part test to decide whether they are exempt from coverage.
Passing one test does not guarantee you pass the other. A worker can be a contractor for one purpose and an employee for another.
What the tests tend to look at
- Who controls how, when, and where the work is done
- Whether the worker has their own business, tools, licenses, and other clients
- Whether the worker brings their own employees
- Whether the work is part of your core business
What a wrong call costs
Misclassification can mean back unemployment and workers' comp premiums, penalties, and unpaid payroll taxes. It tends to surface when a worker files for unemployment or gets hurt on the job.
The 1099 filing threshold changed
For payments made after December 31, 2025, the 1099-NEC and 1099-MISC reporting threshold is $2,000, up from $600.
Check a specific worker
The classifier asks 12 Washington-specific questions and shows where a relationship leans. It is a screen, not a legal determination. Bring doubtful results to a consult.