What is a 1099 employee in today's gig economy era? The 1099 employee is simply an independent contractor who renders his services. The concept of 1099 employee arises due to the tax law that requires payments to be reflected through Form 1099-NEC. In case you wonder what is a 1099 employment, it should be understood that great freedom implies great responsibility. What are 1099 employees? It can be easier to understand after getting information about their rules.