Independent contractors, by definition, control their own hours and method of work. If a company tries to control their work, they’re actually an employee. This matters because companies have to pay FICA taxes for W2 employees, but not for 1099 contractors. It’s a type of tax fraud called employee misclassification that the IRS has been cracking down on.
Independent contractors, by definition, control their own hours and method of work. If a company tries to control their work, they’re actually an employee. This matters because companies have to pay FICA taxes for W2 employees, but not for 1099 contractors. It’s a type of tax fraud called employee misclassification that the IRS has been cracking down on.