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Posts Tagged ‘1099’

Question: Would you switch from a W-2 job to become a 1099 contractor?

I’m thinking about switching from being paid 70-72k/year + benefits at a w-2 job in one setting to a 1099 contractor job at about $65/hr. How much of a pay increase is that? I’m in Minnesota, if that matters. I can switch to my wife’s insurance at minimal cost too so I’m not too worried about benefits.

Answer: If it’s the same job, you and they can’t just switch. A given job is one or the other, an employee or a contractor, and that’s defined by the terms of the job.

What the new job would pay you depends on how many hours you work. You’ll pay almost twice as high a % for social security and medicare as a 1099 contractor. And then there’s the value of the benefits you lose…. not just insurance, but paid vacation, sick days, eligiblity for unemployment comp if you are laid off or workers comp if you get hurt on the job, and any other benefits you might have as an employee.

Only you can evaluate what the loss of benefits is worth to you.

You say … Letter to the editor

The time is now. The tax revolution starts with our receipt of W-2 or 1099 forms. I refuse to pay any taxes on what my company spends on my health insurance. I worked my tail off for years to get security in retirement.

10 Reasons to Switch from W2 to 1099 Free Agent Entrepreneur by Mike Farrell with aspenIbiz

Question: Who do I issue 1099 Misc to?

Hi, I apologize if this question was taken up at some time. I am new in the 1099 Misc issuance field. Just need your advise if 1099 Misc are required for: Blue Cross insurance payments, AFLAC insurance payments, property and liability insurance payments (including broker payments), payments for life insurance, payments to payroll services provider, payments to waste collector, payments to locksmith, payments for car repairs, mortgage payments, and payments to utility companies (DWP) and Phone (landline and cellphone) companies.

Again, I apologize. I have read through the IRS instructions but am still confuse. I would not like to make a mistake.

Thanks.

Answer: You really are confused.

You do not issue one to ANY of those people.

1099 is for independ contractors who you hire to work for you, not companies that you pay for services with.

Question: Can I file taxes without using a 1099 form?

I’m self-employeed but get paid by the hour from another company. Do I NEED a 1099 form to file my taxes? If I file without one, will it hurt me in any way?

Answer: You can report income without a 1099.

TAXES: Health care law to tax small businesses with new burden

RANCHO BERNARDO —- Aside from working with skeleton staffs andscrambling to meet payroll, some small businesses now are concernedabout filing yet another form with the Internal Revenue Service totrack dealings with vendors and suppliers who are paid more than$600 annually.

Question: i run a small seasonal business and it is 1099 time and a subcontractor refuses to give me his tax id number?

this particular guy likes to deal in cash and come to find out
wasnt insured when he said he was–do i file the 1099
without the id number ? what are my options and what
trouble can i get in for not turning in complete information
to the irs and the state?

Answer: he most likely doesn’ t have a tax ID, especially if he is dealing in cash only.

is it possible you might have his SSN? if not, tell him that you need to have it, as this is acceptable for 1099’s.

hope this is helpful to you. You might call your local IRS office for current regulations.

Question: Turbo Tax amended return after e-filing with payment authorization?

I submitted my 2009 tax return through Turbo Tax electronically with instructions for the tax liability to be taken out of my checking account on April 15th. I received an amended 1099-misc shortly thereafter. I know I must file my amended return in the mail but Turbo Tax is showing that I must write a check for the entire amount (no credit for the payment that will be withdrawn on April 15th). Will the IRS still take out the April 15th authorization. If so how is this reflected on the amended return?

Answer: You’ve muddled something somewhere. You only include a check for the additional tax due. The IRS will pull the original payment as authorized.

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