1099ThresholdDesk2026 Federal $2,000 vs. State $600 Form 1099-NEC, 1099-K & IRC § 3406 W-9 Engine

1099ThresholdDesk / 2026 Independent Contractor (1099-NEC) vs. W-2 Employee Audit Scorecard

2026 1099-NEC vs. W-2 Worker Classification Scorecard (DOL 6-Factor + State ABC Test)

Document your independent contractor classification file across the 6-factor DOL Economic Reality Test (29 CFR Part 795), the IRS Common-Law Control Test, and strict State ABC Test jurisdictions (California AB 5, Massachusetts, New Jersey, Illinois), and compare the cost of IRC § 3509 reclassification penalties.

Worker Role, Annual Compensation & 6-Factor Classification Audit

Contractor / Worker Role Title

Annual Payments to Worker ($)

State Test Regime

1. Opportunity for Profit or Loss

2. Tools, Equipment & Capital Investment

3. Degree of Permanence & Exclusivity

4. Nature & Degree of Behavioral Control

5. Integral Part of Payer's Core Business (Prong B)

6. Written IC Agreement, W-9 & COI on File

Attach to vendor W-9 and Subcontractor Agreement

Classification Score & Audit Determination

6-Factor Independence Score (Out of 100)	100 / 100
Classification Audit Risk Rating	LOW RISK (Valid 1099-NEC)
Prong B / ABC Test Status	Passes Independent Trade Standard

IRC § 3509 Reclassification Penalty Exposure (If Audited)

IRC § 3509(a) Exposure (If 1099-NEC WAS Timely Filed ~10.68%)	$5,126
IRC § 3509(b) Exposure (If 1099-NEC Was NOT Filed ~20.46%)	$9,821
Penalty Shield Created Solely by Filing Timely 1099-NEC	Saves $4,695