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Money and Finances
Reply to "DH 401K Maxed Out, What about me?"
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[quote=Anonymous]Totally missed the Tommy Boy reference (underrated movie). We don't know the specifics here, but I can tell you (as a labor attorney on the management side) that it is extraordinarily unlikely that she is truly a contractor. My rule of thumb when clients ask me whether they should classify someone as a 1099 is "don't do it!" I also tend to disagree that the employer bears all the risk. In the case of someone who has taken advantage of tax benefits that would have been otherwise unavailable to her had she been classified as a W-2, the IRS would put her on the hook and count all of that sheltered income as taxable income. I really doubt they would hit the employer with that liability, because the benefit for that went to the employee, not the employer. [/quote]
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