The reason is happens is because your "employer" is trying to cut costs and cut corners. It should be a big flag to anyone who applies to work for a company like this. It is a sign of problems waiting to happen - such as not getting your paycheck, deductions for all types of things including any backcharge known to man. Your employer is looking for any way to boost his invoicing and shrink his expenses. It is Accounting 101 without the ethics and without any concern for the problems it will cause you.
I get asked all the time by potential employees - Can you 1099 me? My answer is simple - do you have a contractor's license and insurance? If any answer is No, then my answer is No.
I have to cover my hiney. If they screw up a job or get hurt or hurt someone else or god forbid some other major malfunction, my company, my reputation and my $$ is all on the line.
Just remember - what comes around goes around - and it is the backbone of this industry it seems - whether or not you're talking about "good" or "bad".
Good luck to you. You're headed in the right direction if you're questioning the ethics in this business.
Re: Help me to understand.
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