W-2 versus 1099 Work



When Companies post available jobs on the Band of Hands platform, they have to select  the Tax Type for that job, either W-2 or 1099. The following outlines the difference:

For Tax Type W-2, the job Poster is immediately sent an electronic Agreement from Capital Talent Partners (CTP), the Employer of Record for all W-2 jobs. The duties of the Employer of Record include:

  1. Employ the “Assigned Workers” as Employees. For purposes of this Agreement, the term “Assigned Workers” shall mean the Workers that are hired by the Subscribers of Band of Hands on jobs that the Subscriber’s posted using the Platform. CTP will be the Employer of record and the Worker will be the Employee as a matter of record by CTP;

  2. Pay the Assigned Workers at the agreed rate between Subscriber of Band of Hands and CTP and set forth in agreement.

  3. Withhold, and transmit payroll taxes, consistent with applicable law and the Assigned Workers’ state and federal withholding documentation—CTP will also provide them with W-2 Statements as required by federal regulations;

  4. Confirm Assigned Workers’ ability to work utilizing E-Verify;

  5. Provide Assigned Workers unemployment insurance and workers’ compensation benefits, consistent with applicable federal and state laws.

  6. Provide Assigned Workers health insurance, 401(k) benefits, and other employee benefits pursuant to CTP’s policies and plans.

  7. Provide for Assigned Workers to utilize sick leave or other paid or unpaid leaves of absences required by applicable law in the state where the Assigned Workers works;

  8. Administer the compliance of Assigned Workers with any background checks, drug screening, non-disclosure agreements, or other placement prerequisites required by Subscribers;

  9. Properly supervise Assigned Workers performing its work

  10. Properly supervise, control, and safeguard the assigned premises, processes, or systems.

  11. Provide Assigned Workers with a safe work environment

  12. Invoice Subscribers for services provided under their Employer Agreement on a regular agreed upon basis.

For Tax Type 1099, the Subscriber is posting an open job for an Independent Contractor who meets the following criteria: 

The engagement, contracting, and management of a Job is between the Employer and a selected Worker. 

Band of Hands is not responsible for monitoring, analyzing, or otherwise determining whether the relationship between an Employer and a Worker is that of an Independent Contractor relationship or W-2 relationship. 

More information can be found on this topic at the Band Of Hands website:

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