<prompt> Human: So I have been working for about a year since I graduated from college, and have been interviewing again because I want to change location. I got an offer yesterday for an engineering position from a company that I think has between 50-100 employees. I expected it to be a salaried position but the offer is for an hourly non-exempt position that would receive OT but it is also a 1099 position tax-wise. There is company provided healthcare and life insurance, some PTOholidays, as well as bonuses, but no retirement. So it is basically a contractor position with some benefits and OT although I have no idea if they would actually ever let me take OT. I have been trying to find examples of this kind of setup but havent had much luck; most that I read about 1099 employees states that they get no benefits but get paid much more. This positions hourly pay is not higher than my current salaried pay if I were to convert it to hourly, and my current job has more benefits.So I guess I am trying to figure out if it is actually a terrible offer or not. I know that as a 1099 employee I would have to pay higher taxes, and I know I would be treated like a salaried employee with the 9-5 work hour structure. Is anyone familiar with something like this, or is there anything in particular I would need to look out for? Why would they provide benefits but make me a 1099 employee? Is it just so that they can pass some of the tax burden off to me? Or is it actually an awesome setup?Any help is very much appreciated.Edit: Thanks for all the responses. I was already certain that they were misclassifying the position even before posting here because it was heavily implied that it would be treated like a salaried position. They even want me to sign a non-compete. And this is in a right to work state, which means they have no reason to do it as a trial run. It is pretty clear that they are trying to keep their number of employees low to avoid regulation as well as pass off some tax burden to an unsuspecting college grad. I will pass on the offer.  <response>: If theyre talking about things like PTO and overtime and the usual perks of being an employee for a contractor position it sounds like they are misclassifying their workers to pay them less without looking like theyre doing so, or trying to skirt regulations that trigger by having more than a certain number of full time employees.True contractors have more of a vendor-client relationship with the company as opposed to a supervisor-subordinate relationship. Meaning theyre given tasks or specifications of what they need to accomplish, and negotiate an estimate on how many billable hours to do the work, but other than that control their own schedule and the specific details about how they work. If a manager is telling you what time to show up, and to do this or that, youre not really a contractor.True contractor positions usually have gross billable hourly rates that are substantially 60 higher than full time employee pay but thats it. Actual total compensation usually ends up being about the same after contractors deduct expenses, pay self-employment tax, buy benefits out of pocket, and save a much larger emergency fund to make up for not having PTO or unemployment benefits. 