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Subject Author Date
Becoming a contractor. What do I need to know? whatsupdoc205 02-19-2008
Posted by whatsupdoc205 on February 19, 2008, 9:42 pm
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 I have been retired for a couple years. I just got a call from my
former employer about an opportunity to do some "contract" work.

At this point, I do not know whether I will be considered an
employee or not -- what I call a W-2 contractor v. a 1099
contractor.

But either way, I'd appreciate any pointers about things that I
need to consider. "Pointers" can be in the form of guidance
(gawdferbid I should call it "advice" <smile>) or IRS-related
documents (Pubs and Forms) that I need to bone up on.

I know that I can trust my employer to handle the arrangement
properly. I'm usually on top of such things myself. I have been
on the other end of this in the past. But sigh, I let someone
else handle the personnel details. So I feel a little "exposed".

(FYI, I am not yet receiving any SS benefits.)

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Posted by Benjamin Yazersky CPA on February 19, 2008, 10:51 pm
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 On Feb 19, 9:42 pm, whatsupdoc...@hotmail.com wrote:
> I have been retired for a couple years. I just got a call from my
> former employer about an opportunity to do some "contract" work.
>
> At this point, I do not know whether I will be considered an
> employee or not -- what I call a W-2 contractor v. a 1099
> contractor.
>
> But either way, I'd appreciate any pointers about things that I
> need to consider. "Pointers" can be in the form of guidance
> (gawdferbid I should call it "advice" <smile>) or IRS-related
> documents (Pubs and Forms) that I need to bone up on.
>
> I know that I can trust my employer to handle the arrangement
> properly. I'm usually on top of such things myself. I have been
> on the other end of this in the past. But sigh, I let someone
> else handle the personnel details. So I feel a little "exposed".
>
> (FYI, I am not yet receiving any SS benefits.)
>
> --


Whether you are considered and independent contractor or an employee
depends on your facts and circumstances.
The IRS should have a publication on its website outlining the factors
it considers in making the determination.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----





"This written advice was not intended or written to be used, and it
cannot
be used by any taxpayer, for the purpose of avoiding penalties that
may be
imposed on the taxpayer."

(The foregoing legend has been affixed pursuant to U.S. Treasury
Regulations
governing tax practice.)





The information transmitted is intended only for the person or entity
to
which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of,
or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you
received
this in error, please contact the sender and delete the material from
any
computer.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by whatsupdoc205 on February 20, 2008, 7:51 am
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> On Feb 19, 9:42 pm, whatsupdoc...@hotmail.com wrote:
> > At this point, I do not know whether I will be considered an
> > employee or not -- what I call a W-2 contractor v. a 1099
> > contractor.
> [....]
> Whether you are considered and independent contractor or
> an employee depends on your facts and circumstances.

I understand. The common law definition of employee is in
IRS Pub 15. That's why I said "at this point, I do not know".
I mean: I do not know if the terms of the arrangement will
meet the definition of employee or not.


> The IRS should have a publication on its website outlining
> the factors it considers in making the determination.

Thanks. I'm aware of that, in general. I was hoping for some
specifics (like the pointer to Pub 15), just in case I overlook
something important. I'm not asking anyone to do the legwork
for me. But I'll bet there are knowledgable contractors who
can rattle off some of the issues that they deal with all the time.

For example, the fact that if I'm a "1099 contractor", I need to
cover the employer's part of FICA as well, in effect. Consequently,
I need to be ready with two different wage structures, since my
goal is a certain after-tax income.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on February 20, 2008, 5:57 pm
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whatsupdoc205@hotmail.com wrote:
>> On Feb 19, 9:42 pm, whatsupdoc...@hotmail.com wrote:
>>> At this point, I do not know whether I will be considered an
>>> employee or not -- what I call a W-2 contractor v. a 1099
>>> contractor.
>> [....]
>> Whether you are considered and independent contractor or
>> an employee depends on your facts and circumstances.
>
> I understand. The common law definition of employee is in
> IRS Pub 15. That's why I said "at this point, I do not know".
> I mean: I do not know if the terms of the arrangement will
> meet the definition of employee or not.
>
>
>> The IRS should have a publication on its website outlining
>> the factors it considers in making the determination.
>
> Thanks. I'm aware of that, in general. I was hoping for some
> specifics (like the pointer to Pub 15), just in case I overlook
> something important. I'm not asking anyone to do the legwork
> for me. But I'll bet there are knowledgable contractors who
> can rattle off some of the issues that they deal with all the time.
>
> For example, the fact that if I'm a "1099 contractor", I need to
> cover the employer's part of FICA as well, in effect. Consequently,
> I need to be ready with two different wage structures, since my
> goal is a certain after-tax income.
>
A dollar to a donut says that you will be treated as a contractor.
That's just the "way of the world."

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by sharx35 on February 21, 2008, 1:33 am
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> whatsupdoc205@hotmail.com wrote:
>>> On Feb 19, 9:42 pm, whatsupdoc...@hotmail.com wrote:
>>>> At this point, I do not know whether I will be considered an
>>>> employee or not -- what I call a W-2 contractor v. a 1099
>>>> contractor.
>>> [....]
>>> Whether you are considered and independent contractor or
>>> an employee depends on your facts and circumstances.
>>
>> I understand. The common law definition of employee is in
>> IRS Pub 15. That's why I said "at this point, I do not know".
>> I mean: I do not know if the terms of the arrangement will
>> meet the definition of employee or not.
>>
>>
>>> The IRS should have a publication on its website outlining
>>> the factors it considers in making the determination.
>>
>> Thanks. I'm aware of that, in general. I was hoping for some
>> specifics (like the pointer to Pub 15), just in case I overlook
>> something important. I'm not asking anyone to do the legwork
>> for me. But I'll bet there are knowledgable contractors who
>> can rattle off some of the issues that they deal with all the time.
>>
>> For example, the fact that if I'm a "1099 contractor", I need to
>> cover the employer's part of FICA as well, in effect. Consequently,
>> I need to be ready with two different wage structures, since my
>> goal is a certain after-tax income.
>>
> A dollar to a donut says that you will be treated as a contractor.
> That's just the "way of the world."

Indeed. The ILLEGAL way.

>
> ChEAr$,
> Harlan Lunsford, EA n LA
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are at www.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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