gopbuster
(715 posts)
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Fri Jan-30-09 08:04 PM
Original message |
1099'd and paid CHEAP as an employee....paying self employment tax |
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Edited on Fri Jan-30-09 08:20 PM by gopbuster
There are "Employers" across the board taking advantage of small contractors with their own tools "having their cake and eating it too" across this nation. Sole proprietor....I am my own employee and a PROFESSIONAL(38 years)
question is this????? Do I get a 6 month tax holiday too?
Self employment tax eats me alive every year
Because of the housing market....I am now only worth 10-15 per hour and they want to 1099 me
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begin_within
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Fri Jan-30-09 08:05 PM
Response to Original message |
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and it seems like a ripoff, but it's going towards Social Security, if I didn't pay it I wouldn't get Social Security later on. Assuming, that is, that Social Security still has money when I'm finally old enough to collect it...
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gopbuster
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Fri Jan-30-09 08:09 PM
Response to Reply #1 |
3. The problem is they want to pay me only employee wages and tax me as a SUB-CONTRACTOR |
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with overheads .........WRONG!
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Hello_Kitty
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Fri Jan-30-09 08:11 PM
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4. I don't dispute the reasons behind paying the taxes. |
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But I too take issue with the increasing use of contract labor to replace regular employees. Companies are often able to skirt employment laws with these 1099 "contractors". I had a gig as one for a little while, in sales. I was expected to show up to all kinds of mandatory meetings and training sessions that I would have been paid for had I been W-2.
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gopbuster
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Fri Jan-30-09 08:19 PM
Response to Reply #1 |
8. SS & Medicare is ok...but no UT? I have writeoffs..but for what they pay me |
tridim
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Fri Jan-30-09 08:08 PM
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I'm in the exact same boat, going on 6 years of getting the shaft from all directions.
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gopbuster
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Fri Jan-30-09 08:15 PM
Response to Reply #2 |
6. I was in business for myself at one time working high end architectural wooodworking |
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Edited on Fri Jan-30-09 08:36 PM by gopbuster
very good at what I do and have all my own tools, set up for field work. Now these scumbags only want to pay 10- and 1099 me
I have been doing it for a while now...but it is getting old and it's not right. I consider myself a PROFESSIONAL.
The Wallstreet geeks couldn't do my job and they ar3e making 75 k to push paper?
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bunkerbuster1
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Fri Jan-30-09 08:13 PM
Response to Original message |
5. Single payer healthcare will be more important than ever. |
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I've been there, done that, on a 1099. It's teh suck.
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NOW tense
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Fri Jan-30-09 08:19 PM
Response to Original message |
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I go to work but have a home office too. I know I could get more money from actual clients but since the housing market sucks so bad there really isn't any work. My biggest concern is what happens if this "clients" job ends.
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philk17088
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Fri Jan-30-09 08:21 PM
Response to Original message |
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Consider setting up an S corp. Pay yourself a small salary and pay the ss on the salary. Your profits from the business flow thru to you and are taxed on your personal return. I have a small business and saved thousands in the self employment taxes. It wasworth the fees incurred to incorporate. It won't affect your contractors at all other than letting them knowthey are dealing with a corporation.
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gopbuster
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Fri Jan-30-09 08:28 PM
Response to Reply #9 |
11. I did that with an LLC....but that was when money was flowing ( I had velocity and higher billable |
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Edited on Fri Jan-30-09 08:28 PM by gopbuster
rate) LLC was simple but on cw they found out you were making money they (local,state gov.) cut it off by throwing licensing fees., bumping up the ins and tax fees, etc.
Now, the problem is....my overheads at $avg. $12 per hour don't even warrant staying in business! And I am a PROFESSIONAL at what I do!
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CharmCity
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Fri Jan-30-09 08:25 PM
Response to Original message |
10. Maximize your deductions! |
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That's what your employers did by sending you a 1099 -- for them, you're an expense, which reduces their taxable income. You can also come up with every deduction you can to reduce your income and your taxes. There are only so many hours a year -- you may be eligible for Earned Income Tax Credit if your hourly rate is in the $10-15 range...
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gopbuster
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Fri Jan-30-09 08:29 PM
Response to Reply #10 |
12. I WILL HAVE TO CHEAT eom |
Rage for Order
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Fri Jan-30-09 08:30 PM
Response to Original message |
13. My advice: don't pay them |
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Then, when the IRS calls you on it and tells you what you need to do to get caught up, and then gives you written instructions on how to ensure that you comply going forward, you apologize, pay the IRS PART of what they are owed, then don't pay them again for a few years. Then, when you get caught again, apologize again, call it an honest mistake, have the IRS waive all interest and penalties, and finally settle your debt.
Hey, it worked for Geithner.
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gopbuster
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Fri Jan-30-09 08:34 PM
Response to Reply #13 |
14. Tried that...I have a IRS tax lien on me...they suck ... |
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It will be paid eventually...money from law suit
justified medical....
still sucks
eom
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Rage for Order
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Fri Jan-30-09 08:41 PM
Response to Reply #14 |
15. I know, I was being facetious |
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More "do as I say, not as I do" bullshit from the head of the IRS, our Secretary of the Treasury. Something tells me the IRS wouldn't be as understanding if you or I were to do the same thing Geithner did. Just a hunch.
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gopbuster
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Fri Jan-30-09 08:44 PM
Response to Original message |
16. The question still stands........WILL SOLE PROPRIETORS GET TAX CUTS?? AND |
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Will General Contractors and other Corporations STOP taking advantage of smaller sub-contractors and pay them AS sub-contractrors
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