Tooele County adopts policy clarifying 1099 vs. W-2 classifications for temporary workers

County staff (presenter Nathan) introduced Resolution 2026-01 to amend section 1.6 and definition section 3.11 of the personnel policy manual, clarifying distinctions between contracted services (independent contractors, 1099) and temporary county employees (W-2). The amendment adds definitions, clarifies criteria (control over schedules, work and methods), and prescribes an approval process requiring HR involvement to reduce legal and tax risk if an engagement is later reclassified.

Nathan explained the impetus: misclassification risks can create back-tax liabilities from state or IRS review if a worker labeled as a 1099 is effectively controlled like a W-2 employee. The resolution includes guidance on factors that indicate proper independent-contractor relationships and 'do not do this' rules (for example, do not set mandatory hours for a contracted service). The HR director (Matt Flicker) is named as a subject-matter resource for department heads, and staff said they may audit contractor lists to ensure compliance.

Commissioners moved and adopted the resolution by voice vote. The policy change is framed as a housekeeping action to remove ambiguity and reduce future fiscal and legal exposure.