Heres another example for you guys of companies being scewed when they 1099 an employee. A guy I know was working for a landscaper, he was paid $25. He started in February and worked until March the faloowing years. Over the course of the 13 months he was paid about just over 75k after overtime. When he went to pay his taxes in March he claimed that he was not a sub, and denied ever receiving a 1099 form and insisted that when hired he filled out a w-2. The company had been 1099 their employees for years and never had a problem.
What happened this time was that this employee recieved his 1099 in Janaury and it finally sunk in just how much money he was going to have to pay to the feds and state. So he decided to play nieve, and take advantage of the company until he had to pay his taxes. He volenteer for as much overtime as he could get over the winter plowing, staying late maintaining equipment and cleaning. Then once the snow was done for the year he went to a tax preparer and played stupid. They fallowed procedures stating that the company was refusing to issue a w2 to an employee and contacted a gov agency (I don't know if it was IRS, Dept of Rev, Dept of Labor), they investigated and found that he was indeed an employee. The big thing that sealed the deal was that the guy was paid an hourly rate with 1.5 overtime.
Because the guy claimed he filled out a W2 and thought taxas were being taken out, the gov took his word on it and the comapny had to pay the back taxes for not just that emplyee, but all the employees. It didn't put the company out of business, but it cost the owner a lot of money between back taxes and all the fines he got.
Why do people not respect us as they do other tradesmen? Because every Tom, Dick, and Harry doesn't think he can be a plumber or electrician!