Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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anything she buys work-related can be written off as a business expense on her schedule c. keep the reciepts
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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If she expects to pay more than $1,000 she should set money aside each pay period to pay taxes quarterly or there will be interest. She can do this online through EFTPS (Electronic Federal Tax...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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#2 above.
I like you. That's such tremendous advice. Easy to see you are a smart dude.
I haven't seen mention of holding the around 30% from each check for taxes etc...
I hope they gave her a...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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My wife is going thru similiar circumstances also going from employee to contractor because her company is simply cutting costs. I have some questions too. I own a multifamily building already (we...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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basically you want to make sure that you don't owe the IRS more than 1k when tax time comes around, if you need to pay depends on her income/tax status
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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She will probably owe more than $1K in taxes based on her expected income level. I know IRS could charge penalties/interests if someone underpays their taxes. I want to make sure this does not...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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As a contractor, does my wife get breaks? For example, does she get a paid 15 minute break for every 3 hour she works?
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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These two posts are the best advice here. I would skip software and skip enrolled agents too. A CPA will be able to tell her everything she'll need to start tracking in order to be able to deduct...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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What the above guy said. Additionally I'm guessing they will be discontinuing any benefits (medical, 401k, PTO, etc..) and on top of that she'll likely be fortunate enough to pay the payroll taxes...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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My wife's company is changing her from employee to contractor (1099). What are some of the things that I should be aware of? Example tax consequences, ways to reduce taxes, etc.
TIA
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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http://www.businessweek.com/stories/2005-02-13/online-extra-dont-write-off-that-tax-write-off-extended
http://lbtaxservice.com/overlookeddeductions.aspx
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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Unfortunately she is not. She is a graphic artist and the owner is closing down his retail shop while keeping his online presence. The retail shop is not generating enough business to justify the...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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Thanks everyone. This has been very helpful/
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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I'm sorry the shop is closing. So she is basically losing her job at the business (retail shop) and starting the contractor position. I would definitely consider using an accountant (a little pricey...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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As a CPA, I would recommend you talk to a tax professional, either a CPA or EA. The bottom line is there are lots of little quirks specific to your situation that you may not realize that the CPA or...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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I am getting conflicting reports on paying quarterly taxes? This is the first time my wife will be 1099. Will we need to file quarterly taxes (state and federal). We are in CA.
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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If she is truly a contractor, she will set her own schedule
You don't have to pay quarterly taxes, you may want to though. Sorry, there is no cut and dry answer.
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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My wife works from home will we be able to deduct part of our rent expense as a work related expenses (she is using the spare bedroom as an office) and how will that be calculated (based on square...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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Get a mileage log and have her keep track of all business miles. Trips to post office, trips for buying supplies, trips for meeting her boss, etc.
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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Couple of things to keep in mind when trying to claim home space as a deduction: it needs to be dedicated to the job or it gets dicey. And someone correct me if I'm wrong, but I think you can only...
Advice Needed for Changing from Employee to Contractor
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Thread created 01-04-2013 by kothi77
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Not likely. Contractors get paid by the hour. Holidays, vacations, sick time, coffee breaks, etc. are on the contractor's dime unless there are some special arrangements, conditions in the contract.
