Taxes

Discussion in 'Business Operations' started by okie2, Apr 2, 2008.

  1. okie2

    okie2 LawnSite Member
    Posts: 97

    Do companies hold out taxes when you work for them. In other words, if I mow the school yard would they hold out anything on my check?
     

  2. No................
     
  3. Bo614

    Bo614 LawnSite Member
    Posts: 36

    No they wouldnt due to the fact your a contractor and not on there pay roll. So make sure you save some of that for uncle sam... or he will come a nocking at your door:usflag:
     
  4. okie2

    okie2 LawnSite Member
    Posts: 97

    Yea I actually am keeping track of every little thing I buy to write off. I actually work at the school so I better keep those checks separate, ay.
     
  5. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,919

    they likely will send you a 1099Misc as a contractor but will not withhold tax.
    That is what my commercial custs do here anyway.
     
  6. Turf Commando

    Turf Commando LawnSite Bronze Member
    Posts: 1,186

    I agree with last post, you will get 1099 form be prepared to pay taxes.
     
  7. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    You won't get a 1099 from every single client though.

    My school district does not send out 1099s.

    Nor does about 2/3 of my commercial accounts.

    I just run my total revenues at the end of the year off of the invoices sent out.
     
  8. B & B Yardscape

    B & B Yardscape LawnSite Member
    Posts: 131

    All customers you sub contract for SHOULD send you a 1099. I have HOA that doesn't.

    Being a school using tax payers money to pay you, I would hope that they do. Accountability could be a big issue at budget time. Check with them and make sure they are planning on it.

    You should get a check in your name and a W-2 for your normal work and you should get a check in the business name and a 1099 for the other work. Depending on the money involved and your deductions, you should set away 15% in a savings account for April 15.
     
  9. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    I don't think a company will send a 1099 if your transactions for the year are less than $600. Perhaps a special request can be made to get one if this is the case.
     

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