Out of curiousity what is the problem with being a 1099 in the US?

(Been an independant in Canada for 7 years - full corporation.)

To start, the federal government requires a certain amount of money as Social Security and Medicare tax. As I understand it, a company that hires employees on a W-2 basis pays this by paying half of it and then taking the other half out of your salary. But, because I am a 1099 employee, I bear the full weight of this tax, so it is as if I am paying double what I would if I were W-2. Other minor things are the fact that I also end up paying for an accountant because I don't want to mess with all of the paperwork and hassle of knowing which deductions I can take, what I can write off, etc. Not a big deal necessarily, but it can easily amount to more than $1000 a year just for the accountant. Then all of the quarterly tax payment estimates, etc. Lots of hassle that ends up costing time and money that I would not deal with as a W-2 employee.

Hope that answers your question, I only have a little bit of experience with this, so my answer by no means necessarily represents the whole truth and nothing but the truth, but it is as I understand things.

:P