Have you heard of the 1099 Form at this point?  It’s likely that, you may not have, for the vast majority of workers in the American economic system do not have to cope with it - however, to be sure, that may change big-time, soon, given this economy!  Or so say the cynics; but what would it even indicate, exactly?  Why should a United States Internal Revenue Service form serve as a sign of the times?

The IRS 1099 Tax Form is utilized by private contractors to record their income to the IRS.  Independent contractors are people or, even, whole businesses that are chosen to perform a task but are not normally employees in a legal sense.  Thus, independent contractors typically receive no benefits such as health coverage, pension plans, and the like.  Originally, such people were expected to work on a short-term basis, though given the savings included in hiring them (not having to provide “health coverage, pension plans, and the like”) they have become an imperative part of the modern economic landscape.

Thus, the more folks that file a 1099 the more likely it is that American businesses are not “hiring” but “outsourcing.”  To be sure, work is work regardless of what it is called, but remuneration is not remuneration if it’s only wages and no benefits, as well as employer-paid taxes such as workers’ compensation.  A society made up mostly of so-called independent contractors would be, in a logic, not so independent, as such people do not often have the luxury of paid sick leave and the like.

From the company’s perspective, of course, it makes perfect sense to use independent contractors - or “1099s” - whenever possible.  Trimming expenses is one of the most effective to become more profitable, and employees cost more than a 1099.  An employee, in the end, costs a lot more than just wages or salaries would suggest if you factor in the advantages.  Furthermore, using an independent contractor may probably limit a firm’s legal liabilities, depending on the exact circumstances involved.  A company is only minimally liable for its 1099s.

To be certain, it’s possible to see something of a silver lining in such developments.  The explosion of those proclaiming themselves 1099ers can be taken as a positive sign, that the entrepreneurial spirit is alive and well in America.

But, regrettably, for the simple fact that many typically are not “independent” by plan! So yes not every forms are completely exhausting and ridiculous, the government supervises using these forms as well as applying them for informative purposes. Even though some people do not favor forms, in most cases, forms are also utilized to serve as a receipt as well, so let’s say a company begins to toy with someone a little too nice, well then they should do their job accordingly so they can use that form to their benefit, just don’t do anything illegal.