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Old 03-19-2013, 04:15 PM
jermana232 jermana232 is offline
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Join Date: Sep 2011
Location: Danville, il
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I'm a 1099 "employee"..questions

I work for a one man landscaping company as a 1099, Ive been with him for a little over a month now. How much money am I losing out on come tax time as opposed to a w2? So I'm at 11/Hr but after taxes as a w2 your really at let's say 9.25 Hr. Would anyone know how much less an I'm actually get as a 1099? I'm on his insurance but am I actually covered if say I hit a rock and it breaks a window since I am a "contractor" is that all on me? I just need a job pretty bad and was happy to get this until I really researched the 1099 thing. Any info is appreciated, thanks.

Last edited by jermana232; 03-19-2013 at 04:24 PM.
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  #2  
Old 03-19-2013, 04:23 PM
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grandview (2006) grandview (2006) is offline
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1st your an employee,he's just trying to skate around the tax .Also if you were a 1099 you will have to pay all taxes on that amount.
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  #3  
Old 03-19-2013, 04:25 PM
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CLARK LAWN CLARK LAWN is offline
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There is no such thing as a 1099 employee. He is breaking the law.
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Old 03-19-2013, 04:45 PM
jermana232 jermana232 is offline
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Right I understand that but I finally was able to get a job
Or else I would just leave. I was just curious how much more I really am losing out on as a 1099 in hourly wage. Also am I truly covered by hiss liability ins?
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  #5  
Old 03-19-2013, 05:19 PM
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Junior M Junior M is offline
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Better put some money away each week, it's a good amount when you gotta pay at the end of the year.
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  #6  
Old 03-19-2013, 05:21 PM
Alluring Lawns Alluring Lawns is offline
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Your are treated like a contracted employee, which means that you have to pay the employee and employer portions of medicare and social security tax (aka self-employment tax) which is 13.3 percent on top of your income tax rate. So if he's paying you at least enough as a contracted employee to cover that cost then your fine. Yes, his insurance should cover you if you break a window.
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  #7  
Old 03-19-2013, 09:25 PM
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JCLawn and more JCLawn and more is online now
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I was way off. Its 13.3 percent. Just add those deductions up and it won't be bad.

Last edited by JCLawn and more; 03-19-2013 at 09:30 PM.
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  #8  
Old 03-19-2013, 05:25 PM
jschultznorth jschultznorth is offline
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you will be paying double the social security tax is all really. Normally an employee pays a percentage and the employer pays a percentage. All the others are the same. I just put 25% of my check away for taxes and pay quarterly to avoid a fine. I am 1099 also. Don't know how it works with you but I have to have a buisness license because of that. I claim my miles on my truck at the end of the year which is a 55 cent a mile right off, cell phone bill and any other stuff I need as a 1099 "employee", vendor, whatever you want to call it.
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  #9  
Old 03-19-2013, 09:41 PM
Roger Roger is offline
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Quote:
Originally Posted by jschultznorth View Post
.....any other stuff I need as a 1099 "employee", vendor, whatever you want to call it.
It is not a matter of what "you" or any other LS member wishes to call it. The IRS has very clear guidelines on who is an employee, and who is a contractor.

As a contractor, you must have all your own tools, set your own schedule, and work independently. If you are taking any instructions on how to do the work, using equipment/tools from somebody else, and getting instructions from another, then you must be working as employee.

Asking about "how much am I loosing" is the wrong question. Either you work as an employee or a contractor, as per IRS guidelines, not what somebody here thinks.

From what you have said here, it sounds like you are an employee and this relationship is subject to scrutiny and penalties (which are severe). Either insist you work as an employee, or find another place of employment.

This is an age-old question, but the answer is always the same. The subject has been discussed over and over on LS.

There are many, many threads decrying other LCOs who don't play by the rules. Yet, I read many posts in this thread giving suggestions to the OP on how to circumvent the rules. Do we want competitors who play by the rules, or those who choose to circumvent the rules?

Last edited by Roger; 03-19-2013 at 09:45 PM.
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  #10  
Old 03-19-2013, 10:07 PM
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Snyder's Lawn Inc Snyder's Lawn Inc is offline
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[QUOTE=Roger;4713507]
As a contractor, you must have all your own tools, set your own schedule, and work independently. If you are taking any instructions on how to do the work, using equipment/tools from somebody else, and getting instructions from another, then you must be working as employee.
[ QUOTE]

I want to get this straight
If I give him instructions how do something. He not a sub but a employee

I knowabout equipment/ tools rules

I been a Sub Contactor many times for seeding jobs and they always gave me instructions how they want stuff done and they set the schedule when they want me there to seed
So from what you say I was a Employee not a Sub Contactor
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Last edited by Snyder's Lawn Inc; 03-19-2013 at 10:11 PM.
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