Can I work as a W2 or 1099 on a TN Visa?

There is no such thing as a “W2 visa.” Instead, a W2 form is used to classify a worker as a direct employee of a company. It is an IRS tax form (Wage and Tax Statement). This means that taxes are withheld from their paychecks and that the company provides benefits, such as health insurance, and pays employer-specific taxes. It’s important to clarify with the employer what type of visa you will be sponsored for. For this type of employment arrangement, it’s common to be sponsored for an H1B visa.
The Definite TN Visa Classification and Employment Status
Under the TN, you must be employed by an U.S. employment agency. Working as a 1099 is a grey area and may or may not be considered to meet the TN requirements. Tell your employer, you need to work as a W2. If they decline to do this, have the recruiting firm hire you as a W2 and then contract you out to the employer. The cleanest option is to work as a W2 employee.
The Grey Area with TN Visa Classification
There are rumors that Immigration Field Officers have been advised that the E-2 treaty investor visa may be required when working as a 1099. Most lawyers will recommend working only as a W2 since this is the safest option. People have been obtaining the TN when working on a 1099, so there is ambiguity here.
Conclusion
If you wish to work as a 1099, you can attempt to obtain your TN Visa — many people have done so successfully. Nevertheless, you may want to also determine if the E2 visa will work for you first.
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