Sometimes employers like to give out 1099s to avoid paying employment taxes. Traditionally, when you are hired by an employer, they will pay a portion of your social security and medicare taxes while you pay the other portion. A W-2 is issued at the end of the year to show your totals. When an employer issues a worker a 1099 at the end of the year they are considered an independent contractor, which means they will be responsible for paying all the social security taxes on income.
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