Questions tagged [contractor]

For questions related to working independently with an organization rather than employee. Most question may require country tag as law could vary from country to country. Additional tag like taxes could be used to qualify the nature of question

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How much tax do I pay if my deductions are more than my taxes owed?

To begin, I would like to say that I am 19 years old and this is my first time paying taxes for myself, so please inform me if I am not approaching this correctly. Be wary of a little bit of math. I ...
crtobin34's user avatar
1 vote
0 answers
86 views

How to clarify to the irs that I hired contractors on upwork so I don't need to file 1099s?

I definitely spent more than $600 hiring contractors for my small business, but they were all hired on Upwork and Fiverr, freelancing platforms. Because I never paid my freelancers directly, I do not ...
No Name's user avatar
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0 answers
73 views

Self employed UK freelancer using a US-based contractor

I'm currently working as a freelancer in the UK and registered as self-employed sole trader. One of the things I'd like to do is use the services of another contractor who is a US citizen that lives ...
Kakalokia's user avatar
  • 101
5 votes
1 answer
3k views

Time limit on sending invoices in the United States

Is there a time limit on how long one can wait to send an invoice? E.g. supposing a contractor does some work, and does not issue the invoice promptly. Is there some time limit to sending the invoice, ...
Robert Dodier's user avatar
14 votes
3 answers
9k views

Can a roofing company charge me more money for the cost of the roof 2.5 years after they were paid and job completed?

I had my roof done (in Florida) 2.5 years ago. I paid my deductible and they were paid by my insurance company just after that. Now, just 2 months ago, again 2.5 years later, I get a call from them ...
Kim Deleo's user avatar
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-1 votes
1 answer
217 views

what is the fair partnership split in property flipping between the investor and the contractor?

My potential business partner just bought a foreclosure property and asked me to fix it up and sell it. Obviously he is just spending the money but I am doing all the work under my own LLC like being ...
JaySabir's user avatar
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28 votes
1 answer
6k views

If I overpay estimated taxes in Q1, am I allowed to underpay in the other quarters?

I'm an independent contractor and I sent in my first quarterly estimated federal tax payment for 2023, but I realized that I went way over. Is it possible to pay less in the coming three quarters (...
fishingforgoats's user avatar
1 vote
1 answer
277 views

US taxes Filling in W9 form as a non-resident electing to be taxed as resident

My wife worked in the US in 2022 as an independent contractor on F1-OPT status. She was recently asked by her client to fill in a W9 form. The W9 form specifies that it is for US citizens, or US ...
Sam's user avatar
  • 11
0 votes
1 answer
60 views

Which is better for tax saving purposes whilst in a contract that is inside IR35: a limited company, or an umbrella?

I am about to take a job that is inside IR35. I have been trading via a limited company and all my contracts have been outside IR35 for the past 12 years. I'm half way through my tax year and I would ...
Jamie Hutber's user avatar
2 votes
1 answer
425 views

Does side-job with W-9 get listed as 2nd job in W-4 for new job?

I have a question regarding "multiple jobs" since my 2nd job is as an independent contractor and has a W-9. My previous main job (W-4) did overlap with the side job, but I will not work the ...
Iced Palmer's user avatar
1 vote
4 answers
323 views

Should a freelance programmer charge me for hours spent where a computer was running a script?

This question might be more applicable to the Stackoverflow crowd, but is not a coding question. I recently hired a freelance developer to build a certain script. From there, after the script was run ...
Telescope144's user avatar
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1 answer
127 views

Do you receive salary when you are a contractor?

A company does not receive salary. As a contractor, the company you own gets paid from the company you work for. Therefore you do not receive salary. If you are an employee for a company (not a ...
user113260's user avatar
1 vote
1 answer
104 views

Do I need to exchange my EU income (Euros) to GBP to get taxed in the UK?

I live in the UK and will start working as a contractor for an EU company soon and I am very new to this process. The company will pay me monthly in Euros, am I obligated exchange them to pounds? I ...
Maria Pantsiou's user avatar
0 votes
2 answers
750 views

What can I do with a lying contractor

I made a claim on my insurance. A contractor helped me with the process and promised to repair my house without paying a dollar from my pocket. I endorsed a check and then he asked me for another ...
Jesse's user avatar
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2 votes
1 answer
68 views

independent contractor compensation

My husband works as an instructor for an educational company, as an independent contractor. The company invoices the students. When he is paid by the company for his teaching fee it is reduced by the ...
Lori's user avatar
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25 votes
2 answers
7k views

Do I need to pay taxes as a food delivery worker if I make less than $12,000 in a year?

I started working for Doordash, a food delivery service. Technically I think I am a self-employed contractor. I saw online that you don't have to declare taxes if you make less than $12,200 in a year. ...
deliveryguy's user avatar
1 vote
2 answers
672 views

Equivalence yearly salary (perm) and daily PAYE (contract) in UK

I have a permanent role in UK that pays £130,000 base salary plus a car allowance of about £6,900. I also receive a bonus (£20,000 per year). Finally my company contributes 10% to my pension plan,I ...
Diuoo's user avatar
  • 21
1 vote
2 answers
138 views

IT Contractor Working for UK Client

How does an IT contractor provide consulting services from India to a UK Client? Do we need to open a IT Services Private Limited Company in India or are there other options, also helpful on how much ...
Rajesh's user avatar
  • 111
30 votes
4 answers
9k views

Possible customer wants me to handle payment to another contractor. Is this a scam or not?

I'm going to do some possible contract work in my field and I've had an offer for some work I found through a reputable venue. However, that venue doesn't handle payments or anything like that. I seem ...
user's user avatar
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1 answer
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Supposing the same amount, has a contractor the same cost (6K + VAT) of a employee (6K) for a company?

If you are a employee, supposing a gross salary of 6000 gbp for 12 months, excluding taxes and NI, you could earn monthly about 4200 gbp (according with a tax calculator https://www.moneysavingexpert....
Luke's user avatar
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2 votes
2 answers
12k views

Can items bought second hand be a tax write off? How does buying from an individual instead of a business work?

I am planning on buying a second hand computer monitor off Craigslist. I would use it for my work as a contractor. What steps should I take to be able to write it off as a business expense? I can take ...
Latchar3's user avatar
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1 vote
2 answers
63 views

What kind of agreement needed to work as a contractor for UK company from India

If I want to work for UK company as a contractor from India (Remotely Software developer) then Do I need to Make any legal agreement in India or UK?
user avatar
3 votes
1 answer
109 views

How to fill out the PPP forgiveness loan application? What do I put for employee identifier, cash comp, and average fte?

Is employee identifier their ss#? And I'm not sure what to put for cash comp and average fte? My ppp loan is for me, my wife, and 2 contractors. We run a repair shop and I only call in my contractors ...
Patoshi パトシ's user avatar
1 vote
1 answer
467 views

Retirement benefits vs. better salary/health insurance

I'm a research scientist and postdoctoral fellow in a US government lab. Currently, my position is funded through a DOE-run organization as an educational/training position. The salary is good for my ...
MikeyC's user avatar
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4 votes
1 answer
359 views

Where would printer ink go in Statement of Business Activites for tax?

I'm an independent contractor. I bought printer ink for the printer I use exclusively for work. On the T2125 where would it go? I'm guessing either lines 8810 or 8811: "office expenses", or "supplies"....
Latchar3's user avatar
  • 264
1 vote
1 answer
185 views

Home Office Deductions for Same Job in Different Locations

Working on my taxes for 2019 and came upon this scenario. I lived at my parents' house for 10 months and my own place for two, but was working at the same job as a contractor in both locations. ...
dyarbrough's user avatar
2 votes
2 answers
284 views

Compensating underpaid colleague out of my own pocket - we're both contractors

TL;DR: Alice & Bob work as contractors for a Canadian company, in Canada. Alice is underpaid, Bob is/was overpaid. How can Bob (legally) compensate Alice for her work? I am working as a lead ...
Ping Lan's user avatar
4 votes
2 answers
512 views

Contractors IR 35 tax burden: is it less than people thought?

With the introduction of the new IR35 legislation in UK, many contractors caught inside IR35 are going to pay more taxes. The most popular tool for the calculation of the tax burden among ...
user1883212's user avatar
1 vote
1 answer
328 views

When businesses contract to other businesses, do they have to issue 1099s?

I run a small US-based LLC and am working with a client (another US-based LLC) who is about contract & pay our company around $300,000 for a software development project. The company we're ...
unicornication's user avatar
1 vote
1 answer
100 views

payments received in one year paid out the next year (US IRS tax question)

If you have an agreement that 70% of the profits from an activity will go to a contractor, and you receive the 100% of profits in year 1, but to protect against credit card fraud, you hold those ...
Rob's user avatar
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0 votes
1 answer
283 views

How is a plumber different than a landscaper as far as requiring a 1099?

I have read blogs that claim I need to file a 1099 if I hire a gardener to mow my lawn or a snow plow guy to do my driveway and pay them more than $600 per year, even if that contractor has lots of ...
Five Bagger's user avatar
  • 9,785
1 vote
2 answers
120 views

UK citizen with a full time job (in the UK) with a low pay US contract - Will this cause any issues with my tax return?

I'm a UK citizen who works full time for a UK company. I pay taxes directly through the company (i.e. they are taken out of my paycheck). I would like to start contracting part time for a US company ...
Gamora's user avatar
  • 111
1 vote
4 answers
546 views

Mother wants me to "be a consultant" for her as way to save on income tax

My mother is self-employed and I am currently unemployed. She proposed an idea to me that I got a bit iffy about. She wants to pay me for "consulting services" -- this way she can essentially reduce ...
turnip's user avatar
  • 730
0 votes
0 answers
73 views

Can I have a sidegig contract in the US if im fully employed in the UK?

My current situation is the following: I'm based in the UK. I'm working as a full time employee for a company X that has a client Y. We've finished some work for client Y and they have a US company ...
festerment-leucocytoblast's user avatar
1 vote
0 answers
46 views

Independent Contractor

I am an employee and fall within the first tax income bracket in Nova Scotia. I have recently taken up a contract job as an independent contractor that pays about $150 to $200 per month. I want to ...
Bernice's user avatar
  • 111
2 votes
1 answer
738 views

Working as an independent consultant for a US company

I recently resigned from a US company and moved back to India on 5/31/2019 (I was on my H1b). I submitted my resignation letter already. I will be going back to school for a Ph.D. in the fall and my ...
Manvitha Reddy's user avatar
3 votes
2 answers
2k views

Do I need business license and account to work as a software contractor

I started a software development contract and decided to open a separate bank account just for this activity. The bank gave me a list of required documents needed when opening a business account for ...
Ady's user avatar
  • 195
2 votes
2 answers
152 views

If I intend to earn on the side doing different category of things should I do it as an individual or as a small business?

If I have a few areas of expertise (that can't fit a classification of services/products) and I'd like to make use of those and provide products or services based on those, should I do it as an ...
perennial_noob's user avatar
3 votes
2 answers
667 views

Should Canadian contractor ask US client to pay into a US or Canadian bank account?

A Canadian [citizen] independent contractor, living in Canada, will take on a US client. The contractor is operating under their sole proprietorship business name which is distinct from their actual ...
tar's user avatar
  • 140
2 votes
0 answers
352 views

Is it required to keep a Form W-8BEN when paying a foreign contractor?

Bob is a French citizen is a tax resident and permanent resident of the United States. Alice is not a U.S. person and works only outside the U.S. If Bob pays Alice for some work she performed, is it ...
Franck Dernoncourt's user avatar
1 vote
1 answer
250 views

Contractor didn't fix the problem and made superfluous work

I had a roof leak; the first roofer inspecting the problem replaced some chipped tiles and also replaced a missing dry verge (which was not related to the leak problem). However, the leak was still ...
anon's user avatar
  • 113
4 votes
1 answer
577 views

How to report 1099-MISC Box 7 bonus ($0 in box 3), but not an independent contractor and not self employed (payment from client of my employer)

I work for a concessions company, but I received a 1099-MISC from the company's client (the team). It's an end-of-year discretionary bonus for taking care of guests of the team as part of my normal ...
Joe S.'s user avatar
  • 41
0 votes
1 answer
338 views

Switching from W-4 to W-9. What should I be aware of?

I'm a welder in California. I recently talked with my employer and mentioned that since you can't deduct expenses as a W-4, I wondered what he thought of hiring me as a W-9 so that I could write ...
Fakey Biscuits McNameless's user avatar
29 votes
5 answers
9k views

Contractor wants client to open checking account

I recently heard about a construction contractor who's building a house for someone, and this contractor wants the client to open a checking account with the contractor's name on it so that the ...
BradDaBug's user avatar
  • 623
1 vote
3 answers
1k views

Can I claim a tax deduction for my occupational physical therapy if I'm an independent contractor?

I'm an independent contractor doing web development consulting. Due to the nature of my work, I am constantly sitting still - many times with bad posture. This has caused me to have back soreness and ...
papiro's user avatar
  • 132
2 votes
1 answer
399 views

Can I get severance pay in bankruptcy settlement?

This is a followup to What happens to contractors when employer goes bankrupt?. When I signed with that company as a contractor, my contract promised me 10 days notice before letting me go. ...
Shawn V. Wilson's user avatar
3 votes
2 answers
3k views

As a director of a limited company in the UK, can I have multiple business bank accounts?

I am a director of a limited company in the UK. I live here and sell my services within the UK. If a bank goes bust, by law, a bank has to protect my deposits to up to £85k. Can I have multiple ...
matewilk's user avatar
  • 876
8 votes
2 answers
2k views

What happens to contractors when employer goes bankrupt?

The U.S. company at which I was a contractor has closed its doors and laid off all employees. I read in the news that all its assets were bought by another company. All regular employees were paid up ...
Shawn V. Wilson's user avatar
0 votes
1 answer
276 views

UK Contractor (Limited company) - EPS or FPS, late submission

To introduce my case briefly, I have been a contractor for two years within a company. For that, two years ago I hired an accountant who dealt with the creation of a Limited Company which was ...
soso23's user avatar
  • 1
0 votes
2 answers
386 views

W-2 contractor loopholes

I am working as a W-2 contractor, not as a 1099 contractor (i.e., pay quarterly). Are there any loopholes or write-offs that I should be saving receipts for? Driving from location to location, gas, ...
Moojjoo's user avatar
  • 131