Whether an agency treats you as an employee or an independent contractor affects your taxes, your benefits, and how much control you have.
When an agency makes you an offer, there's a line item most new agents skim past: are you W2 or 1099? It sounds like paperwork. It actually changes what you take home and what you're responsible for.
The agency withholds income tax and the employee share of Social Security and Medicare from each paycheck. It pays its share of payroll taxes. You may be eligible for benefits such as health coverage or paid time off, depending on the employer. In exchange, the agency usually has more say over your hours, your methods, and your scripts.
The agency pays you without withholding taxes. You are responsible for your own income tax and self-employment tax, and you typically make estimated payments during the year. You generally don't receive employer benefits. In return, you usually have more control over your schedule and how you work, and you may be able to deduct legitimate business expenses.
Commission-only roles are very commonly 1099. Roles that pay an hourly wage during training are often W2, at least for that stretch, though agencies differ. Some agencies mix the two. The structure should be clear from the start, not discovered at tax time.
A 1099 payment isn't comparable to a W2 payment of the same size. If you're 1099, set money aside for taxes from day one, so a bill in April doesn't surprise you. Many people save a portion of each payment in a separate account. A tax professional can tell you what's right for your situation.
Classification rules are set by law, not by what an agency prefers to call you. If you think you've been classified incorrectly, a tax professional or attorney can tell you what applies to you.
This is general information, not tax or legal advice.