They are two different worlds!
If you have to ask you have been operating as a contractor. Doctors, lawyers, engineers, business consultants....professionals with training in their service field do this also. You sell a finished product.
This isolates your customer from the liabilities you absorb. When you put a ten dollar an hour helper on a job and YOU pay all his costs as mentioned above. So YOU charge by the hour at $70.00 / hr up. You calculate a profit into that.
IF you are an independent contractor you need to build all YOUR costs into your BID. You look at the work and submit your contract offering for the work. If accepted that is your world. YOU may have missed something and received the contract as the lowest bidder. Therefore, every step you take cost YOU money but you have offered to do the work and given a price.
If you accept what is offered and agree to be called a contractor and an independent business you pay for all the employee costs the general contractor (customer ) seeks to duck.
Colleges have whole departments and libraries devoted to this topic so do not feel ignorant. Government entities have been aware of the "contractor " dodge for years. The IRS has definitions for all this.
You gotta wonder why this area was not regulated earlier and o0r more prominently? Is this a great country or what? I remember, as a teacher, attempting to explain exactly what I just said and, yo,...I got the finger.
Joe
Joe
Re: 1099's going w-2
Member #: 29524
Registered: 3/16/2004
Posted:
444
Name:
joe diamond
Name:
Joe Diamond
Company:
stellar satellite (sub)
Occupation:
DTV installer
Location:
Chestertown,MD 21620
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