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      09-24-2021, 06:45 PM   #1
nazali
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Gotta new job !

Got head hunted by an agency for a local company, 10km drive, wages doubled and better position (Senior Lead). Contracting instead of permanent, so can now claim, expenses and taxes etc.

Any tips, from any contractors out there ?

(incorporated)



Starting in about 2 weeks time (no remote ) but there you go
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      09-24-2021, 08:11 PM   #2
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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.
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      09-24-2021, 08:36 PM   #3
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Yaaay you got a job as a stripper.
Just kidding !!!!
Relax…
Congrats….

They hiring? Lol!
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      09-24-2021, 08:41 PM   #4
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Quote:
Originally Posted by 2000cs View Post
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.
I'm now self employed full time, but even when I was doing stuff on the side and still had a regular job I was setup as an S corp for the side $$.

The key IMO is having a good accountant. I've used the same guy for probably like 15 years. He let's me know what I can and can't deduct, he let me know when I had to start paying payroll taxes etc. Definitely not something I would skimp on.

Also not sure if you have to get your own health insurance, but that shit is $$$!
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      09-24-2021, 08:41 PM   #5
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Quote:
Originally Posted by 2000cs View Post
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 Iím only up on some of it; for example Iím 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.

^^^

Great advice.
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      09-25-2021, 09:22 AM   #6
nazali
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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 View Post
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 Iím only up on some of it; for example Iím 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.
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      09-25-2021, 09:24 AM   #7
nazali
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LOL,

I'lll ping you on any job opps

txs for the cares



Quote:
Originally Posted by MsGoGoMoto View Post
Yaaay you got a job as a stripper.
Just kidding !!!!
RelaxÖ
CongratsÖ.

They hiring? Lol!
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      09-25-2021, 09:24 AM   #8
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Quote:
Originally Posted by nazali View Post
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
You might be an employee of the agency, definitely check into that.
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      09-25-2021, 09:27 AM   #9
nazali
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My OH has and with my existing job I also have, so that covers the familly,
I'd need to get that, I'll go to my OH's company and get a "top-up"

Quote:
Originally Posted by dreamingat30fps View Post
I'm now self employed full time, but even when I was doing stuff on the side and still had a regular job I was setup as an S corp for the side $$.

The key IMO is having a good accountant. I've used the same guy for probably like 15 years. He let's me know what I can and can't deduct, he let me know when I had to start paying payroll taxes etc. Definitely not something I would skimp on.

Also not sure if you have to get your own health insurance, but that shit is $$$!
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      09-25-2021, 10:39 AM   #10
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Good luck
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      09-25-2021, 11:04 AM   #11
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Round of drinks on nazali !

Congrats!
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