Quote:Many companies will pay people as sub-contractors and not employees to avoid payroll tax, but all that does is shift the full burden to the sub when they have to pay self-employment tax. employees have the benefit of their employer paying half the payroll tax.

I'm aware, and its totally shady! I had a client, this poor lady... she was working for a hotel as a maid, and they were 1099'ing her.


We filed an ss8 with the irs to get a opinion on it, of course they reclassified her as an employee right away. And this hotel not some run down motel 8... corporations will do anything to hose workers... but that's another topic...


I honestly think independent contractors in the construction business are not really employees... but to be honest, it's really a discussion that needs to be had between the general and the sun contractors.


In New Mexico's construction industry, it's understood that you're gonna be 1099'd fur the job your hired to do...


Different states may have different standards...

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