Can you really work free in America today?
USA is NOT a "right to work" state anymore
America and its right to work has quietly changed in the past decade.
I AM talking about a more subtle change that has been "slide in" as a supposed part of an older cause to help mistreated labor that was not "given" benefits by their longer term employeers even though they are treated like staff employees. While there may be some merit in this in select areas especially with the ACA now in place, helping enhance "fair" compensation to deserving workers is NOT the government's agenda and not where its manpower resources or spend is going.
The real agenda of the government is to shut down "highly paid" 1099 contractors ability to work for large client companies. The governemnt has made it "illegal" for companies to hire indepedent contractors. To repeat , it is now in violation of the complex Federal Standards Labor Act " interpretation" for large companies to hire 1 or 2 man firms or independent workers. The freeze out will force these 1 & 2 person companies / independent contractors to take LOWER paying jobs with benefits instead of their current HIGHER paying job with self purchased health care AGAINST each worker's will. They can do that or literally move overseas. A few larger firms are fighting to keep this specialized labor but it is difficult, risky and expensive.
This issue forces the masses to serve “big brother” at artificially LIMITED compensation rates. This issue relates to the right to work of Americans being “amended” by illegal manipulation by the Federal Government. I am not talking about a formal change in the law, I am talking about closed door negotiation and extortion by the USA Federal government’s IRS against hundreds of companies. This issue - the real issue- is not being covered by the media.
The US federal government is forcing small and independent business owners OUT of their own business.
(How? - by forcing larger companies to break their contracts with such small independents in favor of replacing them with larger staffing services that have also bowed down and agreed to follow IRS covertly defined, " suitability to hire" instructions.)
You are no longer qualified to get a job unless you work as W2 employee of a large company?
( Issue: If you don’t take a job as W2 employee of some large company, then you will NOT be allowed to do any work associated with any mid to large size company. Basically you will no longer be allowed to have ANY small business in the USA!)
The cancer like growth of this covert, IRS sponsored, change is amazing. The effects I am directly aware of in the oil & gas industry are already profound. Larger oil & gas companies have been pushed and prodded for last few years on this issue by the government. Non compliance risk is significant as the government apparently threatened to push court findings in favor of granting long term 1099 contractors retirement benefits as well as holding the oil and gas companies responsible for back taxes of the 1099 staff as if they had been W2 staff!
Result was those same large companies trying to restructure their staffing in such a way that all are W2 staff – either their or W2 staff from large approved staffing companies.
For your background, a 1099 contractor is typically a skilled individual or small business that does limited term business with a larger company. The only compensation is money. No benefits, no insurance, no paid vacation are paid to the 1099. All taxes owed are the 1099’ers responsibility to pay. Gross income for Tax accounting is fully reported to the IRS by the big company so full tax under the law is paid. To be clear the millions of 1099 workers I am talking about are NOT all cash types. These people spend more time internally managing their work and pay more actual money than most W-2 folks. That said extra opportunity for right offs exists for 1099ers, getting your own insurance is required, and the result is that overall tax owed by a 1099er is usually about 10+% less than an equivalent W2 job…
Swift International: http://www.swiftworldwideresources.com/candidates/job-opportunities/ : a large job shop agency for years that placed 1099 independent contractors (over 50% of their staffing before 2010 were 1099s). Now, as of 2013, they cannot and will not hire you unless you agree to be a W2 employee of theirs before they “place “ you with firms like Chevron, etc.
FACT: The big oil companies like Exxon, BP, Shell, etc have been engaged by the Federal government on this topic for the past few years. They were threatened to keep these "how to staff" engagement sessions quiet. It took a while but their forced , partial implementation of these unAmercian policies finally resulted in leaking out the reason why.
Job interview conversation excerpts below with Swift and other firms under orders to keep this change quiet include:
- “ you are well qualified for the job, but you are required to be hired as a W2 staffer with us first.”
“ I would prefer staying a 1099 independent contractor”
- “ We no longer support those wanting to stay 1099, if you can’t accept the position as out W2 employee, then we can no longer offer it to you”
However you need to realize that BOTH Democrats & Republican are supporting this evil change. This is NOT a so called “Obama-nation” that some Tea Party supporters talk about… and yes, many Congressmen are working through LPs or similar 1099 like constructs themselves... and yes they are exempt from this anti-American purge of independent American workers….
Both liberals and conservatives and everyone in between is in the slow process of un-Constitutionally being forced down restricted pathways of employment.
Implementation is only partial for now. Reports the IBM, Microsoft, Exxon, Shell, BP and Chevron have been under siege for the past few years now by the IRS have surfaced. The large “body shops, and large professional recruiting groups that support such super major firms have been directed by these main clients to comply with primarily or exclusively supplying W-2 staffers. Phase out periods are being used in some cases to reduce chance of litigation and media attention.
Tactics by the IRS are simple. IRS likes to reclassify 1099 independent contract workers as W-2 employees when practical in order to better control the individual , limit his options and to maximize the taxes collected. When reclassification is successful, it typically results in fines, penalties, and back-taxes for which the employer is many time held liable. These amounts can be large and typically also result in forcing the “newly defined” employer to also create a pension or 401k plan balance as if the worker had been a normally participating employee the entire time.
The U.S. GAO (the General Accounting Office) reports IRS claims millions of dollars in uncollected payroll, social security, medical, and unemployment insurance taxes “lost” because of misclassification of independent contractors. However the GAO report fails to “value” the large fees these contractors pay to insurance companies for expensive medical coverage, accountings and pension consultants and other help that W-2 workers don’t need to be involved with since these 1099 individuals and small companies create their own set of working benefits.
The reasons for this attack against your personal liberty are simple.
1) Improve tax yield by around 10% without openly changing rules
2) Improve control ( and reduce freedom) in the working population
This is a long term, bipartisan attack against the right to work freely in the United states of America. It will not go away in 3 years and will continue to spread unless WE THE PEOPLE do something.