JescoPressure,
The bugus "independent contractor" thing has been used by the sleazy contractors for several years to get (in effect) cheaper labor.
Anyone working as a true contract welder, with a legitimate business, has to charge considerably more per hour than what an employee see's on his paycheck because of several things like workmans comp insurance, liability insurance, bonding, licensing, office overhead, unemployment, fringe benefits if any, BOTH sides of fica, a percentage for small tools, ect.
Now if the welder working contract understands all of those expenses and what they really add up to there is no problem, but what the sleazy contractors do is add a little extra money to the rate but not near enough to make it really worthwhile and the unknowing will see a big(ger) check and think they are making it big until they find out they are responsible for both sides of the fica plus self employmnet tax, ect, ect. and have taken a pay CUT, plus increased their paperwork quite a bit, and if they aren't a legit business they and the contractor in particular are breaking the law. The benefit to the contractor is that he pays out less overall, and lessens his office overhead considerably and eliminates quarterly witholding payments.
This has become a big red flag to the IRS over the last several years and they've stopped a lot of it. Several of the states are also going after these guys agressively. Residential contractors (paying framers/roofers, ect) have been the biggest scammers but it's been done in about every field.
None of this applies to legit welding business' working for an appropriate hourly rate.
JTMcC.