Many employers classify workers as independent contractors (1099) instead of W-2 employees to avoid paying taxes, overtime, and workers' comp. If your boss dictates your hours, tells you how to do your job, and provides your equipment, you are legally an employee.
Being misclassified means you are stuck paying the employer's share of Social Security and Medicare taxes (Self-Employment Tax), resulting in a massive tax bill. You can report this misclassification anonymously to the IRS or the Department of Labor.
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