The All Persuasive 1099 Form
Thanks to the gutting of the American economy by its own citizens – both the politicians that enabled it and the voters who placed them in office – more and more companies are hiring (when they do at all, for the comparatively few positions still within the country) workers not as employees but independent contractors, people who use a 1099 Form when filing taxes.
From a corporate perspective, it makes plenty of sense.
One way to become more profitable is to trim costs, and employees cost far more than independent contractors.
Due to worker’s compensation taxes and advantages like health insurance and sick leave, an employee costs much more than just wages or salaries suggest.
Additionally, independent contractors may not occasion the kinds of legal headaches that come through labor law violations and the like.
Basically, as you fill out a 1099 Form, the company is only minimally responsible for you – from your welfare on the job to your actions on the job.
It all sounds so basic.
Independent contractors were first hired only to provide one-time assistance or work.
For example, instead of fielding its own janitorial staff, a company can just hire a committed janitorial services company once once in awhile.
However, the concept because adopted for more and more job titles, such that in the 21st Century even a big company will outsource critical professional services such as accounting and legal affairs, making just about everyone a 1099 Form filer.
From a particular mindset, the explosion of independent contractors implies a prevalence of the entrepreneurial spirit.
But the truth is, many such workers are not independent by decision.
And it bodes ill for an economy when the labor force is significantly without health insurance, sick leave, personal days, and all the other benefits of a traditional employment model, especially when considering legal protections against abuse.
Comments are closed.