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 fairly few positions still within the country) workers not as employees but independent contractors, those who use a 1099 Form when filing taxes.
From a corporate point of view, 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 benefits like health insurance and sick leave, an employee costs much more than just wages or salaries suggest.
Furthermore, independent contractors may not occasion the kinds of legal headaches that come through labor law violations and stuff like that.
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 simply to provide one-time assistance or work.
For example, as opposed to fielding its own janitorial staff, a company can just hire a dedicated 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 may outsource critical professional services such as accounting and legal affairs, making just about everyone a 1099 Form filer.
From a specific mindset, the explosion of independent contractors suggests a prevalence of the entrepreneurial spirit.
But the truth is, many such workers are not independent by option.
And it bodes ill for an economy when the labor force is progressively without health insurance, sick leave, personal days, and all the other advantages of a traditional employment model, especially when it comes to legal protections against abuse.
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