1099 Contractor Status

1- you have to take out ALL the taxes ( both fed and state)( rule of thumb- 1000 then minus 400 for taxes) 2- file a Taxpayer Identification Number request with your state and with IRS. ( they should be able to give you a estimate on your Quartly payments) 3 - bank that money and do not touch it till it is time to make payment ( Taxs first then yourself).4- keep a record and recepts EVERY Thing ( truck , insurance, fuel, food , travel) so that when you file your yearly tax you can deduct the proper amount.5- if possible get a good accountant who can do the record keeping and forms, or do them yourself w/ a tax app like Quick-books. ( using a accountant is what i used to do- costs more but he has that training)( can tell you if you are doing it right).6- you do not get workman comp or uneployment insurance, so make sure to have some kind of health insurance and money put away for the down days. Good luck.

 

The most important thing is you have a contract. As a 1099, you are a contractor, there to do a specific job and you are free to refuse work, take your own routes and a few other things that differentiates you from an employee.