<prompt> Human: So the company I have worked for, for 3 years now this year decided to make me a 1099 employee because it worked better for them what exactly does that mean for me. I do the same thing I am not contracting my services to them or I guess I am now. Just confused about it and not sure if I have to pay more in taxes now or whatEdit: to be clear this is a part time job which I dont even do for the money mainly out of enjoyment. I am not getting fired even if I did it wouldnt be a problem  <response>: The rules for being a contractor are very strict and nearly every situation like this illegal. To be a contractor the company can only dictate the results of your work, not anything about how you get it done, including when you work. You also cannot be using any equipment provided by the company. The IRS is so rabid about this that you could take this 1099 agreement and then contact the IRS in a year and they would make the company pay your payroll taxes if they were not strictly following the rules.Also, almost always, it works better for us, means your hourly rate will be the same but now you pay all the taxes so youre making a lot less. 