My company switched me from a W2 employee to a 1099NEC contractor as I do not follow a routine/schedule. (I could work weekends, evenings, or sometimes not at all. I can work remotely or in the office but I do not have to "punch a clock.") Can you explain the difference and why the company would switch my employment status?
Thanks for your question, @GEAtreasurer ! This is a bit of a thorny issue. It's clear why the company would change your status, as contractors are generally cheaper than employees. What makes it thorny is whether or not they should have changed your status. The IRS has rules on what constitutes an employee and what constitutes an independent contractor. From this IRS article, the main "tests" are Behavioral, Financial, and Type of Relationship. The article also discusses the ramifications of misclassifying employees.
Hope this helps, please let me know if not!