<p>Remember one thing about independent contractors: They are taxed for both social security and income tax based on their NET income after all business deductions for entertainment, meals, lodging ( if traveling on temporary status for a gig), home office and other deductions. Employees are taxed on dollar one! In addition, any employee deductions are only miscellaneous itemized deductions which must exceed a threshold amount. Even worse, if you take too many employee deductons, you could be subject to alternative minimum tax that will completely eliminate the employee deductions. This isn’t a problem for independent contractors.</p>