Clear explanation that there are no “1099 employees”

Posted on Posted in 401(k), Accounting, Employee Benefits, Small Business, Taxes

I like this clear simple language in Employee Benefit News:

“Employers face an uphill battle in classifying a worker as an independent contractor due to DOL guidance that defines ‘employee’ so broadly that such a classification should only be reserved for a narrow subset of workers.”

It is amazing how many employers are oblivious of the risk until they are audited. I hear the term “1099 employees” often from people who do not understand this is an oxymoron.

Read more here on another recent blog post.

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