That is how the IRS considers income reported on a 1099-misc, Box 7 - as self-employed, or business income. Your boss is trying to push the burden of the employer social security and medicare taxes on you. If you want to contest this, talk to your boss first, but you can also fill out form SS-8, which is a redetermination of worker status form. This could complicate the relationship between you and your boss if the IRS determines you should be treated as an employee.
