Just Politics

[B402]

I lived It,,Form 1099 is for Subcontractors, Self Employeed...

Taxes are not taken out of your check, you are responsible for paying them

How is it abused
Have your employees consider themselves sub contractors. They are responsible for their own taxes and workmans comp...

At The end of the year the subcontractor sends his Employees/also subcontractor a 1099 stating what they were paid over the year..They in the are responsible for paying their own tax...

In residential construction this is how it's done and why you see Mostly Illegal Immigrants doing it..They can out bid legal American Subcontractors by 30 and 40%..And of course they don't pay their tax and sign waivers for workmanship comp which subcontractors are allow to do for themselves..

I lived it..It's the law and Widely abused

https://www.irs.gov/faqs/small-business-self-employed-other-business/form-1099-misc-independent-contractors/form-1099-misc-independent-contractors-1