The April 30, 2016 issue of the Economist Magazine has an article on page 61 Titled "Category error" discussing how many Uber employees and other employees in America are often improperly classified by the Internal Revenue Service (IRS) as non-employees or independent contractors. Because the IRS wrongfully labels certain employees, these employees don't receive unemployment income upon losing a gig. Many of these employees don't get paid $7.25 multiplied by 40 hours within one week because the IRS considers them to be independent contractors, even though they literally work more than 40 hours a week.
Many independent contractors need and want to pay for housing costs and the other necessities of life.
They pay both the employer's share and employee's share of the Payroll Tax.
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