Hi txs,
I understand, that I'm responsible for my own taxes, social security, correct.
I'm trying to get a good accountant.
I'm being contracted out by an agency for one of there clients, so I am only working for 1 company. That may turn into a perm after 6 months or I can stay contract.
No sick pay or holidays, but I calculated, that if I work 6 months, I'll get 90% (approx) of what I would earn in a year. So my yearly salary is doubled.
But as said, I'm on the hook for those other stuff, a lot of people take the taxes and save them so at the end of the year they make money on the saved taxes
but yes good points
txs
Quote:
Originally Posted by 2000cs
Go to IRS.gov and read up on independent contractors. You are on the hook for full social security taxes (you and your former employer may have already paid enough this year, but not next year), and all income taxes. Probably have to file quarterly (1040ES) and maybe in your state as well. There is a lot to this topic and I’m only up on some of it; for example I’m not wise on whether it makes sense to incorporate and why.
One rule of independent contracting is to actually be independent, which means using your own equipment and setting your own hours, etc. You have an easier time arguing that you are independent if you have more than one client. Again see the IRS.gov web site for their guidance.
|