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I don't see a problem with companies "hiring" independent contractors to do jobs that aren't always "needed". A lot of mystery shopping companies do that and it seems to work out great for those involved. Certain IT jobs are done by independent contractors and/or subcontractors because there's no need for the people to be there 40 hours a week. Instead, they're on-call for when s-word hits the fans... or used as a "one day a week/month, we need you to do x, y, z" and the person does the work.
How many here have been the victim of unscrupulous employers, that call/called you a subcontractor / independent contractor, but you are/were an employee in every aspect of your job description?
This isn't anything new, but it has accelerated vastly in the last 20 years and with the healthcare law passed, many employers decided to jump on this bandwagon.
Has anyone here ever heard of an IRS form SS-8?
Employers doing this to skate by under the radar, without paying many many fees and taxes along with having to purchase additional insurance for employees. No unemployment, workmans comp, no additional staff to keep up with the additional accounting for employees. No income tax withheld, State or Federal.
I think I understand part of the 1099 deal in the Insurance/Healthcare reform bill that got tossed in the House yesterday. But it is targeting the wrong area.
Just think if everyone was considered and classified as "self employed"?
Just think if you couldn't be "self employed"?
Actually, this did happen to me at my very first job out of the Marine Corps. I was a DBA; they hired me like they would anyone else, with no mention of contractor status. In fact, even went and detailed my benefits as a employee. Well, first time I took a personal day off(with permission), they didn't pay me and said it was because I was a contractor and didn't get benefits. That job lasted about four days longer because I promptly quit. It was quite a rude awakening upon coming out of the service. But, I've gotten older and a lot more experienced now so I always negotiate my terms up front and get it in writing now.
I don't see a problem with companies "hiring" independent contractors to do jobs that aren't always "needed". A lot of mystery shopping companies do that and it seems to work out great for those involved. Certain IT jobs are done by independent contractors and/or subcontractors because there's no need for the people to be there 40 hours a week. Instead, they're on-call for when s-word hits the fans... or used as a "one day a week/month, we need you to do x, y, z" and the person does the work.
There is nothing wrong with that. What companies are now doing is hiring employees as "contract", withholding state and federal payroll taxes, but no benefits at all to the employee. And the employee can typically work a maximum of only 1,000 hours with the company, and then they are back looking for more work - which is usually of the same type.
Which brings me to, why are there employees at all?
Why not everyone being self employed?
It would certainly go a long way toward connecting people with the need to be valuable to others in order to survive. And it would do a lot to reduce the massive ignorance about how business works.
There is nothing wrong with that. What companies are now doing is hiring employees as "contract", withholding state and federal payroll taxes, but no benefits at all to the employee. And the employee can typically work a maximum of only 1,000 hours with the company, and then they are back looking for more work - which is usually of the same type.
That's not contract, if someone is withholding taxes. That is fully employed(not to be confused with full time)
That's not contract, if someone is withholding taxes. That is fully employed(not to be confused with full time)
It's basically another word for temp, except that this is direct temp rather than being through an agency. Companies are using contract, or temp, labor rather than taking on permanent employees, and their businesses are honestly suffering for it.
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