NIL glossary
What does it mean to be an independent contractor for NIL?
An independent contractor is someone paid for work who is not an employee, which is how most NIL deals treat athletes; that means no tax is withheld, and the athlete may owe self-employment tax and estimated taxes.
On this page
In detail
The IRS looks at control and independence to decide whether someone is an employee or a contractor. Businesses usually ask a contractor for a Form W-9 and, for payments made in 2026, file a Form 1099-NEC once they pay $2,000 or more in a year. See NIL taxes.
Frequently asked questions
Am I an employee of the brand I work with?
Usually not. Most NIL deals treat athletes as independent contractors.
Sources
- Independent contractor (self-employed) or employee? — Internal Revenue Service
- Instructions for Forms 1099-MISC and 1099-NEC — Internal Revenue Service
- Topic no. 554, Self-employment tax — Internal Revenue Service
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.