Q & A – Can one worker be classified as both and employee and an independent contractor?

Q: Can one worker be classified as both and employee and an independent contractor?

A: Yes,  however, this situation must be carefully monitored.  The worker must meet the test for independent contractor status.  And the work done as an employee must be kept separate from the work performed as an independent contractor.  Paying a worker wages under a W-2 and a 1099 tax form has been used as a basis for audit by the Internal Revenue Service.