1099

[Farrell]

This contractor thing does get kinda sticky. Terry needs to speak with a
qualified tax accountant or attorney and get their view on independant
contractor status. When I had my environmental consulting firm and I had a
couple other professionals working for me the basis was even though they
worked for only my company, if they worked out of their home, they were
independant contractors. If I supplied them an office, desk, pencil & paper,
they are my employee. Being that the store owner supplies the pianos and
they are worked on at his store AND that is the only place Terry works, I
suppose it is possible that IRS would view him as an employee and not as an
independant contractor. On the other hand, Terry supplies the tuning hammer,
mutes, etc., i.e. the tools of his trade (perhaps analogous to the desk,
paper, computer, etc.) so maybe he is an independant contractor. Bottom
Line: SEEK GOOD PROFESSIONAL ADVICE. Gina's (I think) suggestion is likely a
good one - get a few clients, even friends for a few bucks - then you are
not working only for the store. Seems clear to me that if you serve more
than one client and carry your own tools of your trade (bought and owned by
you) you are an independant contractor.

Terry Farrell
Piano Tuning & Service
Tampa, Florida
mfarrel2@tampabay.rr.com

----- Original Message -----
From: "Frank Cahill" <fcahill@erols.com>
To: <pianotech@ptg.org>
Sent: Tuesday, February 15, 2000 11:32 AM
Subject: Re: 1099


> 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
>
>
>