First let me be a nuisance child.A 1099-MISC is the official for a business uses to report no employee compensation, rental expense, and other business expense paid to non-employees.It performs roughly the equivalent purpose that a W-2 does for an employee (i.e. it tells the government that your were paid money and probably owe income taxes on that money).Second as a recipient of a 1099-MISC you are responsible for properly reporting that income on you form 1040. Probably on Schedule C.The business paying you is required to file the 1099-MISC if they remit more than $600 in non-employee compensation to you during any Calendar year.You are supposed to file a Schedule C with your 1040 if you receive more than $400 in sole proprietor (meaning you are the only owner of the business) receipts from a business during your tax year (usually calendar).A 1099-MISC is not supposed to be issued to someone who is performing work as an employee.Usually, taxes are not withheld on payments made to contractors. However, the business paying for contracting service may be required by the IRS to take backup withholding from your compensation.In addition, the business should request an I-9 and other information from you to be able properly enter into a contract with you as a non-employee.