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0
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1answer
55 views

How to fill out form W4 when I'm earning $1600 extra income per month?

August 22 was my last day at a job that paid $76,000 / yr. Afterward, that job is supposed to pay me $400 / wk for consulting for $1,600 / month. At the new job (which I started on Aug 26) I'm making ...
2
votes
2answers
51 views

Working for recruiter on W-2 vs. working for client on 1099?

My husband has been offered a job at a large company on the other side of the country. He told them he would commit to a long-term contract of up to two years, but that we did not want to move ...
2
votes
3answers
82 views

About to start being an Independent Contractor - Any advice on estimating taxes?

I am a grad student that is about to pick up 10-15 hours of independent contracting work per week. I work and live in Syracuse. I make $19,000 per year (pre-tax) as a grad student, and will make ...
1
vote
2answers
70 views

Tax considerations for outsourcing freelance work to foreign country

I've seen this asked a few different ways (closest was here), but I am looking to find out from the business's perspective, how to report (if necessary) the amount paid to a foreign contractor. My ...
4
votes
1answer
108 views

How can I prove to the IRS that I didn't receive income that an employer incorrectly reported?

I received a notice from the IRS a few days ago regarding my 2012 filing. One of the companies I contracted for filed paperwork stating they paid me about twice what I actually received. It seems like ...
2
votes
1answer
57 views

As a UK entity, how to contract with a U.S.-based contractor? Implications for tax/VAT?

Being an organisation incorporated in the UK, if we wish to engage the services of a contractor living and working in the USA, what are the implications for e.g. tax and VAT? Do we need to pay the ...
2
votes
1answer
194 views

Getting paid as a Mexican independent contractor doing work for a U.S. company?

I have been offered a remote job for a serious but small U.S.-based company. I am Mexican and I won't move to the U.S. The company tells me that hiring me as an employee would be a big problem for ...
0
votes
2answers
98 views

Does freedom to provide services allow me contracting in Germany without paying taxes there (but in my home EU country)?

The freedom to provide services is one of the fundamental rules of European Union. However, when considering contracting in Germany, I was informed I can't do that with my Polish single-person ...
1
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1answer
177 views

Canadian Contractor for US Company - Tax Forms

How are taxes handled in this case. I am a Canadian contractor doing all the physical work in Canada but the deliverables are sent digitally to a USA company who pays me by invoice. Do I need to ...
1
vote
1answer
944 views

As an independent contractor, should I always charge the client the GST/HST?

As an independent contractor, does my hourly rate determine if I should charge GST/HST to the client? Or should I charge it always?
-1
votes
1answer
54 views

Will life insurance be a problem if I go from full time to contract and back to full time?

Currently, I have life insurance through my employer. If I leave the company and become an independent contractor, then after 2 years go back to full time with another employer that also offers ...
0
votes
1answer
230 views

Can my own corporation deduct my expenses even if I am a full time employee?

Say I decide to become a software developer contractor and open a corporation. So, I am allowed to write certain things off as corporation expenses (e.g restaurant bills, gasoline bills, etc.) Then, ...
2
votes
1answer
125 views

Should insurance pay me tax (hst) on top of the quote for home repairs?

I'm in the middle of an insurance claim for a flood at my house. Insurance gave us a quote for the repairs but we do not want to use their contractors because we have heard negative stories about ...
0
votes
1answer
149 views

Will someone be disadvantaged working longterm as a Contractor vs Permanent Employee

What is the difference in the long run (when you compare at retirement) between a Contractor and a Permanent employee, assuming someone choses to work in one for their whole life? Will the pension be ...
2
votes
1answer
546 views

Salary equivalency: London vs Berlin

I am currently working as a Java Developer in a permanent role in Berlin with a €45k salary and I'm moving to London on August. Assuming this salary in Berlin reflects exactly my level of experience, ...
4
votes
1answer
93 views

Does a total due tax of over $1000 automatically get placed in a quarterly payment plan?

I work as a contractor and I'm filing through TurboTax this year in the US. I owe just over $1100 this year. I've always been in the green before this year - always received a refund. The report ...
3
votes
1answer
50 views

As a contractor, TurboTax Business-and-Home or Basic?

At what point is it worth it to use TurboTax's Business and Home package ($99) over the Basic package($35)? I worked as an independent contractor for a living last year, and I don't suspect there'll ...
6
votes
1answer
177 views

New to working as an independent contractor, what do?

I'm already in the independent contractor boat. So my next steps are to learn how to pay quarterly IRS payments (fun). Should I just follow the form or do I need to use a software tool to better ...
1
vote
1answer
203 views

Work as a contractor for my current employer rather than become a full time employee after my graduation for health insurance continued coverage

I intend to run my side business full time soon and was wondering whether it would be prudent to continue to be a contractor for my current employer rather than become a full time employee after my ...
4
votes
1answer
394 views

How do I compare contract hourly rates with permanent/employed yearly rates, (in UK)

I am thinking of contracting, but do not know how to compare contract (inside and outside IR35) with permanent rates, within the United Kingdom (specifically England). So far I have considered: That ...
6
votes
1answer
212 views

Can I write off expenses during a contract-to-hire period?

In a few weeks, I will be starting at a position where I will be a contract employee for 30 days and then hired on as a "normal" employee, assuming I meet the expectations of my new employer. I will ...
1
vote
1answer
281 views

Can a contractor (1099) with irregular monthly income hope to qualify for a mortgage?

My wife and I are looking at moving again and I'd like to buy if it's possible. I doubt it is, but I thought I'd give it a shot. My wife works a normal job and brings in a steady, consistent ...
2
votes
1answer
199 views

As a contractor - my right to substitution with IR35

Looking at IR 35 compliance : http://www.contracteye.co.uk/ir35_compliance_overview.shtml Substitution An important IR35 factor, you should ensure that your contract allows you to provide ...
2
votes
1answer
449 views

For an independent contractor, which is better: a traditional IRA or a Roth IRA?

As an independent contractor, I pay more taxes than someone who is on salary with a company. Given that, would I benefit more from a traditional IRA that will give me more tax savings now, as oppose ...
7
votes
1answer
15k views

How to determine contractor hourly rate and employee salary equivalents?

I am aware of the general differences between being an employee and being an independent contractor. However, I am unable to easily compare the two when it comes to after-tax compensation. Company ...
2
votes
1answer
61 views

splitting up contract money and tax - weird tax situation

There are 4-5 people living together. Two of them are married to each other. Their incomes fluctuate meaning there are times when only 1-2 people are able to earn for a year. Most of them seem to be ...
2
votes
1answer
519 views

What percentage is fair to expect my contractor will keep when I'm force to become a SUB-contractor?

I’m a full time employee SAP Consultant and thanks to this new recession my employer gave me 2 options: leave the company or become a SUB-Contractor, I don’t know anything related to SUB-Cons, so ...
3
votes
1answer
249 views

If I pay taxes on my earnings, would someone also pay taxes on the same earnings if I subcontract them and pay a share?

Forgive the confusing title, but it was the best way that I could explain the following situation briefly. I currently have some contracts for doing IT works with various companies. They pay me as ...
4
votes
2answers
458 views

Does a European country take out tax from paycheck for a contract employee who is a US citizen?

If a US citizen works in a European country whose currency is Euro for a European company on a contract job (which pays by the hour), does the company take out tax deductions in advance from the ...
5
votes
1answer
571 views

If my parents claim me for taxes do I have to pay taxes?

This is kind of a late question. I am contractor at my current job (19 years old) and I have to pay taxes this year. If my parents claim me will the taxes I owe just come out of the money they get ...
2
votes
4answers
4k views

Which is better when working as a contractor, 1099 or incorporating?

When working as a contractor, is it better to work as a 1099 contractor or rather incorporate as a C, S or LLC corporation? (with one employee/owner/board member) (assuming that the pay is the same ...
14
votes
3answers
523 views

Moving from full time to contractor

For many reasons I am moving from full time employee to a contractor with an associated company in a different city. Everyone I have spoken to says contracting is great except for the taxes and lack ...
3
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4answers
2k views

Contract job (hourly rate) as a 1099: How much would I be making after taxes?

I have an opportunity that would pay me $70 an hour but it would be corp to corp, which as far as I understand would mean I would need to do all my own taxes and Social Security. I live in Raleigh, ...
6
votes
2answers
458 views

Tax implications of having some self-employment income?

I worked as an independent contractor for a short time this year (summer), bringing in under 5K in earnings. I have received all of my W2's at this point and am preparing to do my taxes this weekend. ...
3
votes
1answer
227 views

Which is more beneficial, tax-wise, vacation/holiday time-off, or a higher salary?

As part of recent contract negotiations between a contractor and a hiring corporation in Canada, I've seen an offer to replace expected vacation and holiday payments with an increased hourly rate. ...
3
votes
1answer
1k views

Is it worth incorporating, when working in Canada as a contractor for an employer in the US?

Assume a Canadian contractor is working remotely from Canada for a US based contracting company. Is it advisable to incorporate, in Canada, in this situation? Also, once incorporated in Canada, is it ...
8
votes
2answers
897 views

I run my own nonprofit corporation. Should I pay myself as a contractor or an employee?

I started a run my own nonprofit corporation. We have a board of directors and my title is executive director, founder, and am on the board. We have been completely volunteer staffed including ...
19
votes
6answers
13k views

Why do consultants or contractors make more money than employees?

Why do consultants or contractors make more money than employees?
7
votes
4answers
895 views

Can I ask my employer if I can work as a contractor instead of an employee?

Can I ask my employer if I can work as a contractor instead of an employee?
4
votes
1answer
540 views

How do I best bill out an annualized salary monthly, as a Canadian contractor?

As a Canadian software contractor, what's the best or most accepted method if I've agreed to an annualized salary, to bill it out monthly considering holidays, February being a shorter month etc? Is ...
4
votes
1answer
2k views

Contractors: Guideline on what percentage to keep when hiring a SUB-contractor?

My business may be growing past the point beyond which I can no longer handle the jobs alone (yay me!)... If mine is an hourly job, with little to no overhead, and I bring someone on to work the jobs ...
9
votes
5answers
4k views

I'm currently unemployed and have been offered a contract position. Do I need to incorporate myself? How do I do it?

I'm sure there are tax implications, and other things to consider. I don't know where to start.