Your thoughts on 1099, please
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
Keep up with estimated taxes prepayments. Every now and then the IRS will check and possibly charge a penalty+interest. After ignoring it for several years I finally got hit once - after that I behaved myself. On the flip side, your travel and expenses are much more easily deducted from your income. Just as an example, you may not have "Transit Checks" for to pay for public transport with pre-tax dollars but you now can use it as a business expense (usually) and there's no cap as there would be with tranist checks. Equipment purchases and stuff, too. Just don't be a pig about it.
"The difference between genius and stupidity is that genius has its limits." - Albert Einstein
"If you are searching for perfection in others, then you seek disappointment. If you are seek perfection in yourself, then you will find failure." - Balboos HaGadol Mar 2010
-
You were middle aged in 1099? :omg: I knew you were older than me, but I had no idea ...
Sent from my Amstrad PC 1640 Never throw anything away, Griff Bad command or file name. Bad, bad command! Sit! Stay! Staaaay... AntiTwitter: @DalekDave is now a follower!
-
Yeah - I don't like to brag but I'm actually immortal. My creator brought me to life / Earth in the Cambrian Period of the Paleozoic Era. Now that it's out there... BOW TO YOUR MASTER, PLEBES!!!
You're a Lizard, and you live in The Hollow Earth? :wtf: I didn't think Our Lizard Masters came near development sites!
Sent from my Amstrad PC 1640 Never throw anything away, Griff Bad command or file name. Bad, bad command! Sit! Stay! Staaaay... AntiTwitter: @DalekDave is now a follower!
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
You should be seeking advice from a certified accountant, especially with your legal questions.
-
Yeah - I don't like to brag but I'm actually immortal. My creator brought me to life / Earth in the Cambrian Period of the Paleozoic Era. Now that it's out there... BOW TO YOUR MASTER, PLEBES!!!
Mike Mullikin wrote:
but I'm actually immortal
Mike Mullikin of the clan Mullikin? Better keep your head about you...
Socialism is the Axe Body Spray of political ideologies: It never does what it claims to do, but people too young to know better keep buying it anyway. (Glenn Reynolds)
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
I've been doing 1099 for the last 15 years. I'm too lazy and unorganized to file estimated quarterly taxes, even though the accountant provides the forms every year. Sure, I have to pay a measly penalty, but I get to keep my money until filing time. :)
"Go forth into the source" - Neal Morse
-
C-P-User-3 wrote:
Your thoughts on 1099
It was a rough year in the middle ages. The First Crusade: Siege of Jerusalem, Battle of Ascalon, etc...
Mike Mullikin wrote:
It was a rough year in the middle ages. The First Crusade: Siege of Jerusalem, Battle of Ascalon, etc...
...and you look back fondly on your time served on all the campaigns.
Michael Martin Australia "I controlled my laughter and simple said "No,I am very busy,so I can't write any code for you". The moment they heard this all the smiling face turned into a sad looking face and one of them farted. So I had to leave the place as soon as possible." - Mr.Prakash One Fine Saturday. 24/04/2004
-
You should be seeking advice from a certified accountant, especially with your legal questions.
What? When there's millions of us non-accountants and non-specialists to provide imaginative advice? Where would the fun in that be? Besides, we're free.
cheers Chris Maunder
-
What? When there's millions of us non-accountants and non-specialists to provide imaginative advice? Where would the fun in that be? Besides, we're free.
cheers Chris Maunder
Who would have ever thought that the Lounge would also serve as a covert global think tank? :laugh: You might be on to something here. :thumbsup:
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
My TARDIS is refusing to go there, because it's such a sh1thole.
I wanna be a eunuchs developer! Pass me a bread knife!
-
You should be seeking advice from a certified accountant, especially with your legal questions.
Most of us here could be certified*, so I don't see the problem. * Under Section 8
I wanna be a eunuchs developer! Pass me a bread knife!
-
Most of us here could be certified*, so I don't see the problem. * Under Section 8
I wanna be a eunuchs developer! Pass me a bread knife!
I renewed that certification last week. :thumbsup:
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
Wow, how prophetic! I too have just talked with a client about 1099 work, it has been many years since I did that. I need to dust of my EIN (if I can find it) and make sure the business bank account is still alive.
A human being should be able to change a diaper, plan an invasion, butcher a hog, navigate a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects! - Lazarus Long
-
Yeah - I don't like to brag but I'm actually immortal. My creator brought me to life / Earth in the Cambrian Period of the Paleozoic Era. Now that it's out there... BOW TO YOUR MASTER, PLEBES!!!
-
Mike Mullikin wrote:
It was a rough year in the middle ages. The First Crusade: Siege of Jerusalem, Battle of Ascalon, etc...
...and you look back fondly on your time served on all the campaigns.
Michael Martin Australia "I controlled my laughter and simple said "No,I am very busy,so I can't write any code for you". The moment they heard this all the smiling face turned into a sad looking face and one of them farted. So I had to leave the place as soon as possible." - Mr.Prakash One Fine Saturday. 24/04/2004
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
I do 1099 work myself but had to incorporate a while back for another gig. So, now I run 1099 directly to my company (LLC) which then has a payroll service handle my taxes. So it looks like this: -- client pays me but writes check to my company (they don't do 1099, they have a business expense paid for services rendered) -- I deposit said check into company's business bank acct -- my company hires payroll company (I pay $25/mo to write me a paycheck, take out taxes (fed/state/local), delivers W2 each year and pays corporate quarterly taxes. -- Payroll service sends me "paychecks" -- I write myself a corporate "draw" to split my taxable paycheck income and my business owner income (less social security) So, for $25/mo and the extra step of running it through my company I am protected legally and financially. The payroll service does all the tax nonsense I have no interest in keeping track of. I can also use my company to handle health/travel/business expenses differently than 1099. Not saying going LLC/incorporated is the best way, but its an option that isn't that difficult to set up.
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
If its been a long time since you've worked as a 1099, and if you're not covered by someone else's insurance, you may be startled by the price of your health insurance.
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
I would talk with a CPA about this. I did 1099 and although it's not hard sending in your estimated taxes every quarter, it's a bit tricky. You need to make sure that you're sending in the right amount or you will face a penalty. If things change from the previous year then you will need to make some adjustments. I got screwed pretty bad because my wife made more bonuses so we ended up being a little short. Not terrible but instead of a potential refund we owed a small amount. Also consider the cost of health insurance. That's a real killer, and now that I have a FT job with benefits I'm saving over $9K USD a year on that alone.
"Computer games don't affect kids; I mean if Pac-Man affected us as kids, we'd all be running around in darkened rooms, munching magic pills and listening to repetitive electronic music." -- Marcus Brigstocke, British Comedian
-
If its been a long time since you've worked as a 1099, and if you're not covered by someone else's insurance, you may be startled by the price of your health insurance.
Are used to be an Independent contractor for many years. Thanks to Obamacare I can no longer do that and must be an employee of a company. The reason is that my premiums went from $12,000 a year to $30,000 a year for my family. To add further insult to injury, Obama care insurance ( the individual market) Is really just a discount card in that it has a $7000 deductible AND the benefit is so poor that it no longer qualifies for HSA. Anybody who thinks keeping Obamacare is a good idea is either getting it for free—welfare or is an ideologue who has no experience with it. Good luck to you being an independent contractor, I did it for many years and it was a good deal, until my health insurance premiums went through the roof and the benefits became a discount card — thanks to Obama care. Being an independent now is only viable if you have a spouse that works or aren’t on your parents insurance.
-
Just accepted a 1099 gig Been a long time since I've done one of those. If you are an old hand at this, tell me the really stupid things you've done that really burned you in the past, so that I might get some sort of a warning in advance. Also eager to read about the smart moves you have made. Oh, and duh, have any important laws changed which will come into effect on January 1st ?
C-P-User-3 wrote:
Just accepted a 1099 gig
Well, among the dumb and smart things, as they go hand in hand: Dumb: Didn't put away 30% for taxes. Smart: Took my base hourly pay rate and added 50% to factor in taxes, insurance, etc. Dumb: Thinking I could make it as a contractor with piddly gigs Smart: Getting long term lucrative contracts from large tech companies that, even though you're a contractor, pay you on a W2 so you're not paying self-employment taxes. Dumb: File your own taxes Smart: Pay a tax accountant. Can save more money than he/she costs. And they know the changes in the laws. Otherwise, the rest is project specific. Some of the other dumb things I've done involved taking on a gig that I knew I'd hate (some bizarre Ruby on Rails app a guy was developing in the corner of the 10th floor in the Time Warner building that was completely vacant otherwise, yes, the whole damn floor and that required traveling to Virginia twice a month.) I realized there are some things I will not do no matter how much you pay me.
Latest Article - A Concise Overview of Threads Learning to code with python is like learning to swim with those little arm floaties. It gives you undeserved confidence and will eventually drown you. - DangerBunny Artificial intelligence is the only remedy for natural stupidity. - CDP1802
