When i was younger I had a job where we were 1099ed, meaning no taxes were witheld and the company had no responsibilities for us. Basically we were considered subcontractors. There are certain conditions that must be met (such as they must not have to have constant supervision). Most kids didnt realize they were getting screwed until it came time to pay taxes and they were hit with a whopping 20%. Basically, I see this as a cheap way to avoid paying employee taxes and I have heard some members here say they do this to their employees. The only advantage to this is the employee can write off expenses, but really they have close to zero real expenses. Am i wrong, or is there something else to this? Seems like a pretty sleazy practice to me.