8y
Thank you for your comment, however some of the information being shared is over 5 years old and is not pertinent to today. It is true that Flash in the beginning had sub-contracts that allowed the use of 1099's as subcontractors. We had several individuals who claimed to be "Self-Employed" individuals, some with FEIN and some with just their SSN. As a "Self-employed Individual", by definition don't qualify for benefits from an employer. As a Self - employed person, that 1099 sub-contractor, that individual is his own employer and invoices for his hours worked and is responsible to pay - with the extra pay they received as a 1099, their own taxes, including Federal , State, Medicare, Unemployment payments as well as their own insurance that was required per the contracts for a business to have. In addition, each 1099 was responsible for any Healthcare Benefits that they chose to purchase for themselves. Several of these individuals had benefits through their spouses employer.
In 2013, when the annual request to verify that each person's 1099 status, it was getting harder for each person to verify. Since Flash had previously stopped adding 1099 subcontractors, in 2013, we gave each 1099 the option to transition to an employee status with full benefits. Some people were not happy to lose the 1099 status and left to go work with a different organization that allowed them to continue the 1099 status. In addition, with the Government shutdown, sequestration and the ACA rollout, the decision to stop utilizing 1099's were based on those three issues and nothing else. The contracts dictate whether or not 1099's can be used on a contract. Flash only uses Employees on the current contracts and has been that way for all new hires for the past 6 years. No one was ever classified improperly by Flash Technology Group but an Individual may have falsely classified themselves or their self-employed status.
