In the United States, individuals report their earnings from sources other than wages, salaries, or tips as a specific line of taxable income. Generally, individuals who receive payment as an independent contractor, who does not have taxes withheld from each paycheck, will rely on a form 1099 to accurately report their income on their personal return.
The 1099 series is relevant to businesses since many will pay individuals, freelancers, or other vendors for services rendered during the year. Other circumstances for 1099s to be issued include stockholders who receive dividends from a company or bank account holders who are paid interest.
For companies that only hire full-time or part-time employees that are paid through payroll, the W2 would be the appropriate form.
There are two main forms that are applicable to most entities in the United States: the 1099-NEC and 1099-MISC. Individuals who receive these forms would not be considered employees.
As a final note, 1099s are only sent in relation to trade or business. Payment for personal services such as gardening at your house would not need to be reported through a 1099.