She said she was going to ...
Posted By: SM on 2006-01-12
In Reply to: Oh boy...... - Kate
be working for a service as an IC. Typically, we do call that an SC but IC, SC, you say potato, I say poTAto -- there is no difference in the eyes of the IRS. It doesn't matter to them where your work comes from. Both receive a 1099 and both pay the same taxes. I have my own service and I am well aware of this fact and am getting ready to file 1099s for my SCs. The 1099 that I will file for them is the same 1099 that I will receive from my clients. So it's really just picking nits to argue SC vs. IC.
I believe she simply made the mistake of not referring to herself as an independent SUBcontractor and that's what caused the confusion above. If you work on your own schedule, pay your own expenses, and pay your own taxes and are not considered a statutory employee, then you are an IC.
From the IRS, the definition of an IC:
Who is an Independent Contractor?
A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.
If you want to distinguish IC from SC, it could get really sticky. Every IC receives work from SOMEONE, whether it be from a service or directly from the client, so technically, every IC could be considered an SC, couldn't they?
I get the gist of what she is saying and I do think 9 cpl is a reasonable starting rate since she will be doing subcontracting for a service.
To the OP: I will reply to you via email and provide more info. This back and forth and misleading information is certainly not helping you any.
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