Are Employers Required To Give 1099 Workers Health Benefits?

Jacqueline Slobin
Jacqueline Slobin23 Aug 2022
Reviewed and Fact Checked ✔️

1099 workers are typically hired by a company for a specific project or for a short period of time. They are not the same as employees and usually are referred to as a freelancer, or independent contractor. Since they are not employees, they are not usually eligible for health benefits from the company they are working under. The important thing to be sure of as an employer is that you’ve correctly classified 1099 workers, which we cover in this article.

While companies may not offer health benefits to 1099 workers, there are other options to access affordable healthcare such as Mira. A Mira membership offers access to low-cost urgent care visits, primary and preventative care services, telebehavioral health, discounted prescriptions, and affordable lab testing all for just $25 per worker per month. Sign up today whether you’re an employer or a 1099 worker.

1099 Workers vs. W2 Employees - Employer Requirements

There are many differences between 1099 workers and W2 employees. 1099 workers are independent contractors that are typically hired to help companies with a specific project or for a finite length of time. W2 employees, on the other hand, receive a salary and benefits from the business owner they work for and are tasked with more of a responsibility to the business.

1099 Workers

In general, 1099 workers have greater flexibility in creating schedules, accepting tasks, and methods for completing jobs. However, 1099 employees need to provide their own supplies for jobs and do not qualify for all of the same benefits as W2 employees. They’re also known as freelancers, contractors, or independent workers. 1099-MISC is a tax form that’s issued to independent contractors that have earned over $600 over the course of the tax year. They’re responsible for filing their own self-employment tax returns. 

W2 Employees

W2 employees include full-time employees and typically have set hours, less independence, and more structure than 1099 employees. They also tend to work for longer periods of time and as a result, receive more benefits from their providers, such as health insurance. W2 workers are issued a W2 Form by their employers.

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Jacqueline Slobin

Jacqueline graduated from the University of Virginia in 2021 with a B.A. in Global Public Health and is a current M.D. candidate at the Icahn School of Medicine at Mount Sinai. Jacqueline has been working for Mira since April 2020 and is passionate about the intersection of public health and medical care.

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