No idea about American laws, but in my country it seems the main motivation is cheating on taxes, i.e. the money you save by cheating on taxes exceeds the transaction costs on the market, and because everyone around seems to be doing it, so it seems safe to do.
I call it “cheating”, because the specific laws were made with an intent to incentivize starting a small company, as opposed to being an employee. What actually happened is employers pushing job seekers into becoming technically-not-employees, so we get a growing group of people who de facto work as employees (except with none of the labor law protections), but de jure are entrepreneurs (and bear legal responsibility for the tax cheating). So it is win/win for the employer, mixed outcome for the employee. Also, the pre-tax numbers for non-employees are bigger than the post-tax numbers for employees, and although your System 2 knows that you need to adjust for taxes, the System 1 remains impressed.
No idea about American laws, but in my country it seems the main motivation is cheating on taxes, i.e. the money you save by cheating on taxes exceeds the transaction costs on the market, and because everyone around seems to be doing it, so it seems safe to do.
I call it “cheating”, because the specific laws were made with an intent to incentivize starting a small company, as opposed to being an employee. What actually happened is employers pushing job seekers into becoming technically-not-employees, so we get a growing group of people who de facto work as employees (except with none of the labor law protections), but de jure are entrepreneurs (and bear legal responsibility for the tax cheating). So it is win/win for the employer, mixed outcome for the employee. Also, the pre-tax numbers for non-employees are bigger than the post-tax numbers for employees, and although your System 2 knows that you need to adjust for taxes, the System 1 remains impressed.
Let me guess: you’re from Poland?
Slovakia, but I guess the situation is similar.
Like ir35?
https://www.gov.uk/guidance/understanding-off-payroll-working-ir35