Worker Misclassification Question - Higher Overall Compensation as a 1099
Theoretic question - if you prove someone has been misclassified as a 1099 (should be a w2), but that person's compensation was higher when he moved to a 1099 taking into account those lost w2 benefits (401k match, healthcare, and sick leave/vacation), does the offset basically void possible damages? I understand if misclassification is proved the person could get paid back those SE taxes and the employer would owe their half to the IRS, but what about the other lost benefits after the 1099 change?
Haven't been able to find a clear answer on this. Thank you everyone!
Location: Virginia