1099 employment question

So your a laborer or machine op using their tools/machines..? Or even worse a plant op..( I'm sure you don't own/lease the plant)

Sounds like a scam to me....

Some reading for you.....

http://www.irs.gov/Businesses/Small...ependent-Contractor-Self-Employed-or-Employee

 

1099 has always been a shady deal. I'm not sure if you have to pay S.S or workers comp., but I know you have to pay a self-employment tax and pay taxes on your income every 1/4 or face the rath of penalties and interest (which add up quick). I would never work for someone that gave me a 1099 again, especially in your situation. When I had my own truck, I got a 1099, but I had a bunch of write-offs, but still couldn't pay my quarterly taxes, and got in a heap of trouble. It seems easier for companies to classify you as an independent contractor, and it saves them the hassle of a w-2, and they probably save money that way. It says a lot about a company that gives you a 1099, scam for sure.

 

[QUOTE="semi" retired;4405635]1099 has always been a shady deal. I'm not sure if you have to pay S.S or workers comp., but I know you have to pay a self-employment tax and pay taxes on your income every 1/4 or face the rath of penalties and interest (which add up quick). I would never work for someone that gave me a 1099 again, especially in your situation. When I had my own truck, I got a 1099, but I had a bunch of write-offs, but still couldn't pay my quarterly taxes, and got in a heap of trouble. It seems easier for companies to classify you as an independent contractor, and it saves them the hassle of a w-2, and they probably save money that way. It says a lot about a company that gives you a 1099, scam for sure.[/QUOTE]

There is really no such thing as a self employment tax. What this actually refers to is the employer portion of the Social Security and Medicare tax that you are now responsible for.

 

Pay cut? Yes indeed, think more along the lines of 30 - 35%. If you have any benefits with your employer like holidays, vacations or health insurance (where they kick in a percentage), they are paying for that. When you become "Self Employed" and receive a 1099, you are losing that free money.

Then, think of the bookkeeping tasks and time that will cost you to keep up on taxes and insurance. I'm not talking business expenses here, just personal. It all adds up.

Here's an idea: Tell them you're fine with that but you need a raise to go that route. Something like 50% would work or you walk.

 

A company in Texas moves equipment for Schlumberger, Halliburton,.... The only equipment they have other than chase vans is office equipment. They pay their drivers weekly salary ( or a fixed amount weekly) and give them a 1099. The drivers are on-call . To be paid the entire amount they have to be available the whole week except in the case of a 24 hr reset.
Is this legal ?

My wife was a nail tech in Florida and was paid on a 1099 and they made her get a business license.