Nanamom is correct, they can 1099 you and make you pay both halves of the SS and Medicare. One thing I found out a couple of years ago is that a lot of companies were calling it "contracting" just to get out of those taxes. Regs say that if you are acting like an employee, you are an employee. You know the old saying, "walks like a duck, quacks like a duck, its a duck". This was in the instance of people coming to work on a regular basis, using the companies equipment to perform the job, and going home at the end of the day. There is a lot of contracting going on out there. Just make sure you are fully aware of the details before you get involved. If this is one of those work at home things you see/hear about all the time, PLEASE check them out throughly. There are some unscrupulous people out there. In one instance I know of, a lady bought the supplies from the company, made up the product, and sent it in. They said the workmanship was not up to their standards. She was out not only the income, but the dollars spent for the supplies. Did they care? NO!! They probobly made a profit from the supplies they sold her. Now, I am not saying they are all swindlers, but you need to make sure you know fully what you are getting into. Good Luck. Keep us posted.