1099. Exactly. Many, many companies are looking at the 1099 option to keep from having to pay ObamaCare taxes. I know a number of CPAs and every last one of them has said so far that seems to be the only option outside of just closing down.
I’m a 1099 employee working part time for a small company.
Just talked to the owner. Times are tough and he will be closing a product repair shop (2 F/T Jobs eliminated) and concentrate on Internet Sales. His primary brick and mortar sales / rental business is down 40% from two years ago.
He anticipates the next Obama term will be sink or swim for the Company. Of course I’ve been telling him that for years. Let’s just say he really gets it now.
The feds have been trying for years already to make it nearly impossible to hire individuals as independent contractors. This will only get worse. They want only businesses with employees doing contract work. A lot of those who are placing people on “1099” status are probably doing so in violation of requirements.
http://www.nolo.com/legal-encyclopedia/preserving-status-independent-contractor-30177.html