Not always true. I work as a contract employee. My taxes are payroll deducted. I get paid OT and I am covered by all employment laws that cover employees. I do have a contract that I work under. The contract is an employment contract, thats all. It outlines wages, scope of work, etc.....
The company does have some projects they pay 1099 on. But when you work on those projects you are classified as a sub. You're not getting paid OT or anything. I dont think they will pay subs a perdiem either.
Re: in - house contractor
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