Campaign Staff Classification: The “1099 vs. W-2” Decision Matrix
Subject: Legal Risk Assessment – Worker Classification Protocol
To: Campaign Leadership, Finance Team, Legal Counsel
From: AccuPay Systems – Political Payroll Division
The Warning:
Misclassifying campaign workers is the fastest way to bankrupt your campaign—not from losing the election, but from Department of Labor (DOL) lawsuits.
In the political world, there is a dangerous myth that
“everyone is a consultant until we win.” This is false.
If you hire 20 canvassers, hand them campaign iPads, tell them where to walk, and pay them hourly, they are
W-2 Employees—not Independent Contractors.
Getting this wrong exposes the candidate to class-action lawsuits for unpaid overtime, back taxes, and penalties that can haunt them long after Election Day.
Action Required:
Use this decision matrix to classify every single person on your payroll.
The Decision Matrix: Employee (W-2) vs. Contractor (1099)
| Decision Factor | W-2 Employee (The Staffer) | 1099 Contractor (The Consultant) |
|---|---|---|
| Behavioral Control |
Campaign dictates how work is done.
|
Worker decides how to achieve the goal.
|
| Financial Control |
Paid by the hour or salary.
|
Paid by the job or flat retainer.
|
| Relationship |
“At-Will” Employment.
|
Project-Based.
|
| Training |
Campaign trains the worker.
|
Worker brings the expertise.
|
| Typical Roles |
|
|
The “Canvasser Trap”: A Specific Warning
The most common compliance failure in modern campaigning is hiring Canvassers as 1099 Contractors.
- The Scenario: You hire 50 students to knock on doors for $15/hour. You treat them as contractors to avoid paying Social Security, Medicare, and Unemployment taxes.
- The Reality: Because you control their routes, scripts, and hours, the DOL considers them employees.
- The Risk: If one canvasser files a complaint about unpaid overtime (working >40 hours in a chaotic GOTV week), it can trigger a class-action audit for all 50 staff members.
The Rule of Thumb: If they are “boots on the ground” taking orders, they are W-2. If they are “experts in the office” giving advice, they might be 1099.
Why This Matters for FEC Reporting
Your classification affects your FEC disbursements.
- W-2 Staff: Reported as “Payroll” or “Salary.” The campaign pays the employer share of payroll taxes (approx. 7.65% + Unemployment).
- 1099 Consultants: Reported as “Consulting Services.” No taxes withheld.
AccuPay Insight: Consistency is key. You cannot pay a Finance Director as a “Consultant” for three months and then switch them to “Payroll” without raising eyebrows at the FEC or IRS. Pick a lane and stay in it.