1099 vs. W-2 drivers

A W-2 driver is an employee — taxes withheld, employer control over the work, benefits possible. A 1099 driver is an independent contractor — responsible for their own taxes, paid gross, with more autonomy and no employee benefits. The classification is a legal status with tax and labor-law consequences, not a stylistic choice.

Why it matters when hiring drivers

Employment type is one of the strongest self-selection filters in driver recruiting: many drivers will only work one of the two models, and a mismatch discovered on a recruiter call is a wasted lead. Misclassification is also a genuine legal risk, with states like California applying strict tests such as AB5.

Employment terms are screened in the AI interview, and onboarding handles both contract types.