1099 Contracting vs W2 Employee: What Remote Agents Need to Know

Looking for a way to earn extra income, pick up seasonal work, or add a side hustle without locking yourself into a full-time job? Remote opportunities often come in two forms: W2 employment and 1099 independent contracting.

Both options have their perks, but if you’re exploring flexible ways to supplement your income, it’s important to know how they differ.

What is a W2 Employee?

A W2 employee is the traditional worker setup. Employers hire you as part of their staff, which usually means:

• Taxes handled automatically – Employers deduct taxes before you’re paid.

• Potential benefits – Health insurance, PTO, and retirement options (depending on the company).

• Fixed schedule – Shifts are set by the employer.

• Stable hours – Often year-round, predictable work.

Best for those who want steady hours, long-term security, and benefits.

What is a 1099 Independent Contractor?

A 1099 contractor is more like running your own mini business. This is the most common setup for side work and seasonal gigs. It usually means:

• You’re in charge of your taxes – Nothing is withheld, so you’ll set aside a portion of your income for tax time.

• No traditional benefits – You manage your own healthcare and time off.

• Schedule flexibility – Choose when you want to work, making it easy to fit around a main job, school, or family.

• Short-term or seasonal opportunities – Great for holiday cash or part-time extra income.

• Expense deductions – You can write off things like internet, office equipment, or home office space.

Best for those who want flexible, short-term, or part-time earning options without being tied to one employer.

Final Word

If you want a long-term career path with stability and benefits, W2 employment might be the way to go.

But if your goal is flexibility, extra income, or seasonal opportunities, 1099 contracting gives you the freedom to work on your terms.

At Royal Level Solutions, we specialize in supporting remote 1099 contractors who want side work that fits into real life — whether that’s holiday cash, part-time evenings, or a way to supplement your main income.