<prompt> Human: As the title states, Im an employee software development with a company W2, salary, etc but after reading all of these posts, Im wondering if I should actually be classified as an IC. I looked at the IRS guidelines and it seems like I fall under IC for the following reasons:My employer controls nothing about what equipment I use, where I work, when I work, or how I work.I purchase all of my own equipment at my own expense right now, its been somewhere around 5000USDIve signed an NDA, but not a non-compete, and have been told that Im able to work for other companies as an IC as long as it doesnt interfere with my current work with the 4 other companies that Ive been with, this was the exact opposite.On the other hand, I do have a very nice full benefits package. When I accepted the offer, I had two options: Xyear as an employee with benefits, Yhour as an IC without benefits. Everything else is the same.I looked into the ramifications, but all I see is the opposite what to do if youre an employee falsely classified as an IC. Do I care? What are the repercussions if the IRS does determine me as an IC instead of an employee?tl;dr: title, what happens if its true?Thanks.  <response>: The reason you werent able to find any ramifications for your situation is because there arent any; if you meet the tests to be considered an IC, it means your employer is allowed to pay you as an IC, but theres absolutely nothing wrong with someone who could be considered an IC to be treated as an employee.The purpose of these rules is to prevent companies from taking advantage of individuals who are clearly employees, so there really arent many rulesrestrictions on how individuals who qualify as ICs are treated. Since you qualify to be considered an IC, its between you and your employer to negotiate a compensation package that works for both parties. 