The constant misclassifying of workers as independent contractors tends to increase the tax gap according to IRS studies show.  The employees report a larger portion of their earnings than contractor; since contractor can deduct legitimate expenses such as phone, travel, entertainment, etc.  The businesses that erroneously treat workers as contractors avoid having to pay Social Security and Medicare taxes on the contract payments.

Independent contractors are subject to FICA taxes but on the net amount so the government gets less, and that does not make them happy.

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