There are a few key differences between 1099 and W2 employees.  1099 employees are independent contractors responsible for their own taxes and benefits, while W2 employees are considered employees of the company and receive benefits, taxes are withheld by the employer, and they may be entitled to additional protections and benefits.  A 1099 contractor makes the most sense if you need specialized skills for short-term projects, want to avoid payroll taxes and benefits costs, and are comfortable with less control over their work.  Hire someone as a W2 employee if you need ongoing, long-term work, want more control over their work and schedule, and are willing to provide benefits and withhold taxes.  There is an important case to be made for the culture of your company, as well.  W2 employees may feel a stronger sense of commitment to your company, since their employment is considered more secure than a 1099 contractor, so they may be more invested in your organization and culture.