<prompt> Human: Ive got a friend thats being worked as a 1099 contractor but is paid hourly. Now I know technically he is an employee, and ive tried explaining to him the situation and the ins and outs of the tax liability hes assuming, however I am lacking the mot juste and any help would be greatly appreciated so that I can succinctly explain to him why its not for his benefit.  <response>: Maybe prepare a tax return for them both ways showing the comparison between 1099 and W2.I do want to note that anyone getting paid 12hr. is very likely an employee and not a contractor. 