Home Forums Hunting & Shooting Hunter's Campfire Anyone a 1099 contractor?

What line of work?
Running your own business isn’t for everyone, probably not for most.
After 25 years of making my own schedule and having to answer to only myself, I don’t think I could ever be an employee again.

Get a great accountant and do what they say. Bid all work to be worth your time. Pay your taxes and insurance.
Laugh at folks that kill a clock for a living while you fish, hunt, and enjoy your life.

Coworkers son worked for some Mennonites, he was telling me they paid him$14/hr. Cash.

Told him the boy better bank 1/3 of his pay. 1099 is coming, and it's gonna
be ugly. Of course they thought I was FOS.


1099 came. Had to borrow to pay taxes.

They hired him.
Told him when to come to work.
Used company vans to go to jobs the company lined up.
Supplied all materials, most tools.

And called him a contractor!

Gets even better.

They "gave" him a $3000 "profit sharing" bonus.
Which was "reinvested" into the company for HIM.
(Except, when he quit it was gone. Never got any of it)

So, they took $3k of profit they made, invested it back into their
company, and made him pay the taxes on it.


If you are truly a contractor, a 1099 is how it's done.


But getting 1099ed doesn't make you a contractor.
Usually, it makes you a stooge.

As someone else said.
"Companies don't do it to benefit workers"

I work both a W2 job and do consulting work as an independent contractor for multiple other entities. The rate you need to charge as an independent contract depends on a lot of factors. I nominally charge about 2x plus direct costs of my W2 wage. If you are working on an hourly basis as an independent contractor, there are overhead hours that you have to eat for things like preparing taxes, preparing proposals, billing, business development, etc. You also may have extra insurance costs (I have to carry professional liability insurance). You will want to set up a separate bank account that is only used for your business. Also get a separate credit card that is only used for business expenses. Set up a a Solo-401K so you can tax defer a chunk of your income.

In your case, I would spend the money to have an attorney look at whatever kind of contract they are going to offer you. I don't know how much bargaining power your have, but these contracts are usually heavily in the employer's favor. The IRS has been cracking down on these kind of work arrangements so I would want the company to indemnify me if, at some point in the future, the government decides your were really and employee and not a contractor.

Chesterwy: Once I retired from the PD (24 years ago) I began working for two different body guard and robbery suppression companies.
I was a 1099 "employee" for many years - wasn't much of a hassle - and lots of ways to diminish that taxable income!
Good luck and keep good records.
But remember the number one rule in America - NEVER and I mean NEVER everfuck with the I.R.S.!
They will never quit coming after you and they never forget.
Hold into the wind
VarmintGuy

The one debt you can't bankrupt out of.

Have seen a number of guys go tits up in businesses.
To a man, when thing got tight they cheated the quarterly taxes.
Figured they could get things fixed and make it right.
Next quarter, oh chitt.

The IRS man coming to the door was the wakeup call, finally.
I was personally there for it with an employer.

After the equipment goes back to the finance company, the bankruptcy
court let's you screw those who trusted you, the IRS keeps you on the hook.

And they will tell you straight up in that very first interview, pay us.
Pay it now. Borrow anything you still can to pay us.
Use a credit card. The interest rates are better than the IRS.


No trying to derail.
Just fair warning if you go 1099.
Set aside tax money first. And forget it. It's gone.
You can not touch it. Ever. The more you might need it, the
more important you don't touch it.

Why even issue a 1099? It is only(when I was doing it) a $50 dollar fine from the IRS. Well worth not having to do all the paperwork....

Oil and Gas work. Basically what is happening right now, our jobs (in the field, where the company makes money) are pretty infrequent. And they don't want to pay us to sit around the shop waiting for work to call in (there's only so much cleaning, greasing, oil changing) that can be done before you run out of stuff to do. So essentially they just want to pay us when we are in the field running a job. I'm thinking it would be in the neighborhood of $1000 a day. Which depending on the workload, might be $5000 a month, could be $30,000 a month. Just like the nature of oil and gas. You're either eating bear, or barely eating.

Do you already own your own service truck and tools?

If you do it, check out setting up your own Individual 401K, its very nice.

Used to mean you pay both sides of your social security

Welcome to self-employment reality muddafouckas LOL

no big sugar daddy employer paying halfsies for ya

I have not worked as an engineer since the week obuma got elected, but as I remember it:

1) Direct employee W2 [work overtime for free because you are "salaried"]
2) Contractor through job shop W2 [get paid 50% extra for overtime]
3) Independent contractor 1099 [send an invoice, which is a piece of paper with a dollar amount written]
4) Form a corporation, [get deductions but get taxed twice; corp tax and income tax]


I worked as a direct employee engineer from 1978 -1983
I worked as a combination of direct employ and job shop contractor 1983-1991
I worked as a combination of job shop contractor and 1099 independent contractor 1991-2008

look into switching to an S corp, that way you don't get hammered in self employment taxes.

To the people that say you can't be 1099 and be told when to report and when to do what etc- all companies on large construction projects are forced to comply with a production schedule- or get sent down the road.
Based solely on that- they would be considered employees under the IRS guidelines- oops.

You will probably have to pick up your own liability and workers comp Insurance.