1099

[Frank Cahill]

Gi

Gina Carter wrote:

> ----- Original Message -----
> From: <pianolover@worldspy.net>
> To: <pianotech@ptg.org>
> Sent: Tuesday, February 15, 2000 3:16 AM
> Subject: 1099
>
> Terry,
>
> > I have a question for other floor tuners out there, (In California) like
> me who have not yet started there own business. Even though we work for a
> piano store, we are (at least in my case) considered  "independant
> contactors", and we get a  "1099" form at the end of the year.
>
> That is the smart thing to do for the dealer. However, if that is the _only_
> work you do, the dealer probably can't claim that you are a subcontractor.
> Broadly interpreted, IRS rulings say that working for the dealer must be a
> part of your income, not all of it.



> In other words, to qualify as a
> subcontractor requires that you have more than just one source of income. I
> don't think this is correct...here's why:

Many hi-tech workers (including me part-time) work as contractors here in VA.
Most contractors  work for only one company at a time, 40+hours a week. When the
contract is over, they go to another company. There is no doubt that these are
contractors. So the bit above about Terry's job being part of his income does
not make sense.

It does get complicated...  When I left my full-time job to become a full-time
piano tech, I worked as a part-time contractor at my old company.  Although the
company claimed me as a contractor, the IRS didn't see it the same way.  Unless
I were to work as a contractor at a different company, the IRS views me as a
part-time emplyee....this means that I can't deduct mileage or most other
deductions.  But, if I work at just one other company as a contractor and
return, there is no problem.

So the company manages to pay me with  minimal paperwork, I have to pay all
taxes (quarterly), and I cannot make any deductions against the job. Not the
best arrangement, but it helps pay bills.

In Terry's case, he could be considered a contract employee...I think.  If one
is a contract worker, he has to start somewhere.  In my case,  I get a contract
which I review and sign.  Perhaps Terry should get a contract.

>
>
> >Do we have to make quarterly statements,>
>
> Yes. If you don't, the IRS adds penalties to what you should have paid
> quarterly.
>
> < or just pay our taxes at the end of the year? >
>
> If your quarterly payments do not total the amount owed at the end of the
> year, you pay the remainder. If you've over-payed, the overage will be
> applied to the next quarterly payment.
>
> >I appreciate any help in this area, until I can meet with an accountant,
> which may not be for a while. >
>
> Hie thee to an accountant now! Ask your co-workers, friends, etc. for a
> recommendation then call and set up an appointment for an hour consultation.
> The information you learn will more than pay for itself. The accountant will
> tell you what is deductable, what isn't, how to set up your quarterly
> payments, etc. Pay a small amount now or pay a lot later.
>
> Gina

--

Frank Cahill
Associate Member, Piano Technicians Guild
Northern Va