OMS Blog: Go Beyond

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Drew Cleghorn

Drew Cleghorn is a Business Consultant at OMS Group in Lakeland, Florida. His expertise includes payroll outsourcing, HR compliance, employee benefits, and PEO services for small to mid-sized businesses. He frequently works in tandem with commercial insurance agencies (like Acentria) to bring bundled business solutions to clients—particularly helpful in complex employer environments.

1099 vs W-2 Employee: How to Classify Workers Correctly and Protect Your Business

Worker classification is one of the most important and most commonly misunderstood responsibilities for startups and growing businesses. Determining whether someone should be treated as a W-2 employee or a 1099 independent contractor impacts everything from payroll taxes to compliance risk. For employers, the distinction comes down to one fundamental question: do you control how the work is done, or just the final result? Getting this right isn’t just about following rules - it’s about protecting your business from costly penalties and ensuring a solid operational foundation.

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