Home Improvement Contractor - Licensed Contractors

Is working for independent contractor more bad? than company who files your taxes?

which one is more better? Working as independent contractor or is it better to work for a company who files the taxes?

Public Comments

1. it depends on you- as an independent contractor you can write off your business expenses. you wont be able to get unemployment (unless you are paying unemployment taxes on your own wages, which you probably aren't doing as a sole proprietor) as an employee, you may have access to benefits you couldnt afford being self-employed. but you will have to listen to your boss. if you dont need any employee benefits and business is good, be an independent contractor.
2. That depends. can you kep track of everything? Do you have expenses involved in doing the job?? For people who are not organized and baad at keeping records or keeping track of receipts etc then being a contractor is something to think about. For those who are organized it can be great. As a contractor you are responsible for the taxes (you know this) but you usually can deduct expenses from your income so you reduce your taxable income. You have to keep track of these expenses and keep receipts. MOst contractors enjoy writing off computers, cell phones, some vehicle expenses, software, pens, paper, other office expenses if a hjome office is required and more. For me the contractor way has been better. I enjoy a better gross income than working for a company full time and have the write offs so I give the gov't less of my money. The beauty is I do enjoy a little more freedom than an employee with regards to days off and time to do things. I can actually go shopping during the day during the week for an hour or so. Since my job takes me out of town I can actually play tourist for part of a day or all of a day or more. It's up to me. Now one difference for me is that I'm paid by my performance and not on a set amount of work or being available a certain amount of time. Purely performance, more I do, more I make (so long as work is available). This tiime of year is the slow period so I get free time during the day (some days not all).
3. I have a canned explanation to apparently clueless independent contractors and, if you are asking relatively simple questions in this forum with English that has fatal grammar errors, then no offense, but you qualify as clueless. Or more bad! Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area. You probably need to have taxes withheld to keep you from spending everything before tax time comes.