In r/personalfinance, a boss switching W-2 staff to 1099 is framed as misclassification that strips benefits and shifts payroll taxes, often signaling employer distress and raising compliance risk for both sides.
It’s bad.
First, understand you are no longer an employee. You’re an independent contractor, ineligible for worker’s comp, unemployment, or other employee benefits.
You have to pay the employer side of social security and Medicare, which is 7.65%, so that’s nearly half your “raise” right there.
No such thing as a 1099 employee
Also, this is a probable sign that the business is struggling to make payroll. Make sure you’re looking for a new job.
This finding is one of many signals tracked across Stock Market. The live feed updates every few hours with new expert voices, debates, and emerging ideas.
← Back to Stock Market