If there were a special tax on heart rate monitors that _are_ medical devices, and FitBit was calling theirs not a medical devices to avoid paying that tax, then the analogy would be reasonable.
The whole employee/contractor thing is all about payroll taxes. You have to pay them yourself if you get a 1099, but your employer pays them if you're on a W-2. Employers have a much better track record of paying that, so the government wants to avoid too many 1099s.
I've been a contractor before. I got a W-2, but no benefits. Now everyone is happy.
The whole employee/contractor thing is all about payroll taxes. You have to pay them yourself if you get a 1099, but your employer pays them if you're on a W-2. Employers have a much better track record of paying that, so the government wants to avoid too many 1099s.
I've been a contractor before. I got a W-2, but no benefits. Now everyone is happy.