Since late December and early January I have been meeting with clients to line up everything for the preparation of 2011’s 1099’s. It is looking like there are more for each client then ever before. I also expect this trend to continue.
With the costs of everything increasing, it does make more since for small businesses to have 1099 workers than regular workers if possible. They save 7.65% on FICA, they save on IDES fees, FUTA fees, worker’s compensation and E&O insurance. This is before any other actual benefits that may be given to employees such as medical, dental, disability or life insurance.
Employees or potential employees need to keep these costs in mind when job hunting, especially if they are contemplating the acceptance of a 1099 offer. Remember you are personally responsible for these costs as an independent contractor. So you have to price yourself accordingly.