Due to the gutting of the American economy by its own citizens – both the politicians which enabled it and the voters who put 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, individuals who use a 1099 Form when filing taxes.
From a corporate perspective, it makes loads of sense.
A good way to become more profitable is to trim costs, and employees cost far more than independent contractors.
Due to worker’s compensation taxes and added benefits like health insurance and sick leave, an employee costs much more than just wages or salaries suggest.
Moreover, independent contractors may not occasion the kinds of legal headaches that come from 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 simple.
Independent contractors were first hired just 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 specific perspective, the explosion of independent contractors indicates a prevalence of the entrepreneurial spirit.
But the facts are, many such workers are not independent by option.
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, specially when considering legal protections against abuse.
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