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This is an issue that just came up for my sister. She is a single mom, having just left her loser boyfriend and father of her child. She is doing the best that she can, but doesn't always think things through very well. She usually works as a waitress, but just took on a job as a house cleaner. The catch is that her employer is going to pay her as an outside contractor, thus no deductions from her check. She thinks this is a great idea because, as she sees it, she always gets a refund, and so she should never have to pay (I know, I know, there are no absolutes when it comes to taxes except that you have to pay them!).

I am sure that she is missing out on some things like unemployment benefits, employer-matching on her S.S., and no disablity insurance, but what else could she be getting screwed on here? She only sees the increased paychecks, not the drawbacks....

Mike in NJ
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