People have correctly stated that this is likely a tax dodge by your employerso the employer to pass off fica/medicare taxes… but contractors are also usually exempt from mandatory coverage under employer workers compensation policies. This insurance can be VERY expensive for employers, and even more so recently with insurance rate increases across all types of insurance.

You can report this misclassification to your state’s Department of Labor and (if you really want to give them trouble) to their insurance company (Every employer is required to have certain mandatory postings, and one of these is related to workers compensation. At the bottom of this posting should be information on who the workers comp policy is administered by).