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Recently, the company I subcontract for most regularly as a freelance contractor has informed me that they are changing all freelancers' tax status to 'employee' as opposed to 'freelance contractor'....and will be issuing us W-2's instead of 1099's beginning with the next tax year. The IRS made them do this. Even incorporating myself would make no difference.

Since I do not work full-time for them, I am ineligible to join their 401K plan, yet will be unable to contribute to my own Keogh with income earned through their company.

So, I am looking for other companies to freelance for who do not have this policy in place. One company that has expressed interest is checking with the tax acct. This morning the payroll manager told me that there is a tax category called 'statuatory employee' which still involves a W-2, but the freelancer may still be classified as 'self-employed' for other purposes. I've never heard of this...does anyone know if this means I could still contribute to my Keogh as a 'statuatory employee'?
Thanks in advance. Meowiz
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