The IRS website has the answer to your original question...but there's
more you should be aware of.  As an independent there are some issues
with being correctly classified as a contractor vs.. an employee.
 
The rules for this are pretty clearly laid out on the IRS website.  They
are well laid out here as well:
 
http://www.topechelon.com/recruiters/contracting/20point.htm
 
Basically the contract w2 vs.. 1099 has some problems for people who are
independents.  The IRS has been cracking down on this.  If the customer
controls your schedule and determines a few other things the IRS is
likely to want to classify you as an employee.
 
Contractors are generally people who set their own schedule, bring their
own tools, and are completing a specific defined task.  So if your
customer is bringing you onboard for staff augmentation for an
indefinite period of time be wary.
 
Inc. magazine had a good write up on this in the current issue as well
found here:
 
http://www.inc.com/magazine/20080901/employee-or-contractor.html
 
Yes, I know I didn't answer the original question :)

________________________________

From: Action Request System discussion list(ARSList)
[mailto:[EMAIL PROTECTED] On Behalf Of Drew Shuller
Sent: Monday, September 08, 2008 11:09 AM
To: [email protected]
Subject: Re: W-2 vs. 1099


** 
I would assume contract-W2.
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