Taxes as IC or subcontractor?
Posted By: Pam on 2009-01-08
In Reply to:
Does anyone know about filing taxes as a subcontractor or IC? Do taxes work the same for both? Is it the self employed tax form? Any info is helpful thanks.
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You have your W2 showing very clearly those taxes were paid. MQ is responsible for those taxes
because you were a statutory employee. That is the responsibility of the employer to pay those just as though you were an employee.
Subcontractor
Yes pay her out of your business account. You should provide her with a 1099, can buy them or have the IRS send you some. Also some Quick Books or Turbo Tax help you prepare them. You deduct it as a expense on your schedule C. Since it is an expense deduct you won't have to pay taxes on it. Make sure that she/he realizes that you will be reporting it to the IRS as an expense. Under 600 you don't have to fill out a 1099 but I do. Make sure you have their SSN, etc. to fill it out. Good luck. I just keep everything separate business and personal - makes it easier even though my Quick Books tells me exactly what I have made, etec.
Any more questions let me know. Patti
subcontractor
not to sound dumb, but is this my responsibility? Thanks!
subcontractor
uggh! I have wondered about this myself in the past. this would be the hard part. I guess I would have to talk it over. thank you though for your help.
subcontractor
I think what you are doing is wonderful! More people like you should be so kind as to take a newbie under her wing. If I ever an fortunate enough to have my own FTP server and accounts I want to do the same just because I know from experience how hard it is to be a newbie. Hope it works out for you both.
Subcontractor
Get rid of her - nicely. Just tell her that you MUST meet your deadlines in order to keep your accounts. Your livelihood depends on this. Tell her since she is having some difficulties right now, you cannot send her more work. If you want, tell her to contact you in the future when things settle down for her.
You cannot give her any more chances. What will you tell your clients? "Sorry the work didn't get back, but this MT I really like had a personal crisis and couldn't type last night."
Hire someone less enthusiastic who will do the work on time. I'm not enthusiastic about this job anymore, but I do it because I'm enthusiastic about living indoors and eating every day.
Pay for subcontractor
Well, first let me say sorry you blew TAT, or it was blown for you - however, if a company holds your check because a TAT was blown, even a last check what would you do? Pay her the 100.00.
As for calling your client, why would you give her this information. When i sub out They get the voice file only and a patient list that has been blacked out on the information. And always sign a confidentiality agreement. If she did call - which I doubt, do not try to confirm with them - they may not like the idea you sub'd out, and why bring it up if they do not. Apparently you are still getting their work so they must like something about it.
Lastly - be careful next time. But also keep in mind - if you were not paid you would have a fit - she just took it one step further and has a hissy fit.
I have a subcontractor......
I have had an account for a couple years and just recently hired on a subcontractor. This account pays me 14 cpl and I pay the subcontractor 7 cpl. This is an easy account and all the sub has to do is type what I send them and I do the rest. Granted, I took a 50% cut on the work by hiring a sub, but now I know that even if I'm not working I have 7 cpl coming in. I don't understand why anyone should feel guilty if they are paying their subs a decent amount for what the work requires. Just last pay period she did 1000.00 worth of work (based on my 14 cpl) and I collected 500.00 of that (based on her pay of 7 cpl). As an IC, I just see it as a benefit to me, not sure why anyone would feel guilty.
I am a subcontractor.
I make 12 cpl with one company full-time acute care and 11 cpl part-time in pediatric subspecialties (neurology and oncology mainly) with another company. The FT does offer a daily production bonus.
Subcontractor Pay
Does $2.00/report for MRI, CTs and ultrasound reports sound reasonable for an MT with 20+ years experience? I know some reports can be long, some short. Any insight would be helpful. Thanks
Subcontractor pay
I do some subcontracting for an IC. My checks are usually different from the amount on my invoice by a little. Sometimes a little more and sometimes a little less. Shouldn't my check be the total on my invoice?
It depends....are you an IC or a subcontractor?
10 cpl is not unreasonable as a subcontractor
I have had several subcontracting positions that pay 10 cpl and now working as subcontractor for 11 cpl. You do not have to accept the first thing they offer. Naturally, they are going to offer you a lower rate. If they offer say 9 cpl, then ask for 10 cpl. If they offer 10 cpl then ask for 11 cpl. It has worked for me. Now as an employee with good benefits, I will accept 9 cpl with an incentive plan.
Subcontractor..help with various issues
I need some advice on how to handle having a subcontractor. I have a subcontractor now helping with one of my accounts. My process is that I have a separate checking account and separate savings account for business. All of my checks from work as an IC go into this business checking account. I then transfer to the business savings account a certain percentage for taxes. We'll then transfer most of the remainder to our household checking accounts. That way, I can look at the business checking account and see my deposits and know exactly what my income is. Anyway, now that I have a subcontrator, I don't know exactly how to handle everything. Do I just keep track of what I pay her and then claim it as an expense at the end of the year? Will I have to give her a 1099? I guess I should only hold back for taxes on the percentage of the money I keep now. I'm just confused on the whole process. I could use any advice...or a point in the right direction for where to find information on this. Thanks!
Most hire a subcontractor
I think it it is wise to establish a relationship prior to needing them so they are already familiar with the account(s) and can do it with very little instruction.
Lisa - subcontractor
There have been people here who would like just a little extra. If you get the account and once you are settled, why don't you put your need on the board. You might find some bites. Some people like to do a little extra. Of course if it is something digital you could even go away from your state. Just a thought. I happen to enjoy helping others when on vacation. It has worked for me in the past as well when I needed a vacation . 
Paying a subcontractor
I am going to take in a subcontractor in an on-the-job training program. I want to know your input on paying them and paying yourself for the training. I an setting up an on-the-job training program. As an independent contractor, I receive 8 cents/line. I am going to have the subcontractor work with me in my office at my other work station, and I will teach her everything and QA all of her work closely until she is up to speed. I was thinking of paying her 6 cents/line and me 2 cents/line. What is your input on a suitable division of payments?
Diff between IC & subcontractor
What is the diff between these two? And do most of you have set hours that work as a subcontractor or do you pretty much have flexible hours? Thanks!
I agree, but if I have a subcontractor come
into my home to remodel or something, I certainly can tell them not to come at midnight or early in the morning because that does not work for me. He does not have to abide by that and can turn the job down, but I can certainly suggest it.
When I use a subcontractor, I pay them as soon as their invoice is turned in to me.
I consider it a good business practice to pay the sub as soon as their invoice is submitted. After all, don't you expect the client your contract with to do the same for you. You really should have paid this $100 invoice long before now. You have no recourse and should consider this a lesson learned.
Personally, I don't think you have any business subbing out work if you're no more prepared to pay and, apparently, are careless with the information that your sub receives from you. You could also be considered breeching confidentiality if you're not having the sub sign some sort of understanding regarding the confidential nature of the work you're sending out. 
So you are subcontractor, not contracting with doctor direct.
If that's the case, then you need to ask the MTSO you work for if they can provide schedules for the doctors. They may not have them, either, but they could ask the docs for them. So it was their staff and not the doctor's staff that couldn't verify his schedule? That would be different advice then. Sorry - thought you were contracting directly with the doctor as your client. Sounds like you were hired through an MT service instead.
Maybe they get the work from the doctor that way, but the MTSO should try to organize and work it out with the doctor to see that it's uploaded promptly. Not all offices will cooperate in that respect so it's on the MTSO to remedy that, unfortunately. Some just send when they please without regard to the MTs' schedules, and sometimes you can talk until you're blue in the face but they still do it "their" way, on their terms. The MTSO could hold their ground and request the doc to send on a more regular basis, but it's pretty much out of your hands, I'm afraid.
As an IC, you can say "this is when I'll be available to work," and let the MTSO schedule accordingly. Or you can always find other IC work to supplement so you can at least work while you are waiting, or just find another gig altogether if it gets really bad.
2 accts are direct hospital, 1 is a clinic and the 4th is a subcontractor position. nm
.
As an IC when paying taxes, are SS and fed taxes sent SM
to the same place?
THANK YOU! That is my point. She still pays taxes, her DH still pays taxes...
so who exactly is getting cheated? And just who are you talking about when you talk about whether it is "fair" or not. I don't give a crap how much taxes my neighbor pays. It's none of my business. And if I found out they were paying less in taxes than me, I would ask them how they heck are they doing it so I can do it too!
I just want ask, is it necessary to get personal and insult? You disagree with me, fine. But I've been called a liar, a cheat, a no-ingetrity thief, my intelligence has been insulted, and I have had my parenting skills questioned. That is a little over the top. If you cannot debate an issue without resulting to personal attacks, then YOU are the stunted one!
It is a very good thing that some of you work at home, ALONE! You are sorely lacking in people skills and diplomacy. Let me guess, when you worked in the office you were one of those girls who didn't like to share her desk, griped if someone dropped a crumb on your desk, and kept track of everyone's breaks, lunches, and line counts just so you could tattle to the supervisor! I've worked women like you, it was like working with kindergarteners. That's why I came home to work. Do us all a favor, looking in the mirror, count your wrinkles, and realize that this isn't high school anymore!
I do pay taxes --- MOST DEFINITELY PAY TAXES
I also keep track of all of the write offs!!
Do you also pay your own taxes?
that means it works out to about $13 an hour.
Taxes
Do you think when you are working for someone else that "they pay your taxes?" We all pay our own taxes except for the additional 7.5% of SS as an IC you pay. And I will bet that as an IC/MTSO I pay a lot less taxes than you do and I make more than you do. I cannot understand the mentality of people that say "you pay your own taxes." Your employer just "holds your money and pays your taxes." I am just responsible enough to put the money aside and pay mine but as a IC/MTSO with all my deductions I pay on 20 to 25% of my gross and I am able to put aside $700 to $1000 per month in my retirement which is totally deductable. Your statement is totally incorrect.
IC - taxes
I am never sure whether to classify myself as an IC or small MTSO as I have my own accounts. But where I see a lot of the problem is that the doctors are not making as much as they used to, due to insurance company reimbursement, etc. They are trying to save every penny that they can just like we do. I keep my line charges probably quite low according to many standards but I make a a very good living and I cannot see charging the doctors 15 to 18 cents per line when I make very decent money at 11 to 12 cpl -- gross lines. I also get GREAT tax breaks and though I have to pay the other half of the SS self employment, I still bring home more of a dollar than working for someone else. I have also found it hard to find anybody that will subcontract to me that is truly dedicated and will work hard. (I pay 8 to 9 cents per gross line and I deliver tapes and do all the printing, pick ups and deliveries) I know that kids get sick, there are football games, etc. but this is still a job and you gotta put it first sometimes. It is hard to find anyone that will work the TAT of 20 to 24 hours by the time I get the tapes to them. Then that leaves the burden on me. So I mostly stick to my accounts that bring me in $50 to $55 per year (and this gives me my benefits) and have turned down accounts because I don't want the hassle of the IC's to me and they could be going overseas right now. But I think that the insurance companies are behind this more than the docs. When your MRI is interpreted over in India -- do you get a break on the interpretation -- no but the insurance company gets a break on what they pay out so who pockets it????
My thoughts and I am sure I will get a lot of disgreements but that is okay we are all entitled to our thoughts. Oh yea for this amount of money I do work 28 to 32 to hours per week-- just quit an in house part-time job as they wanted me at least 24 hours now, started out at 10 to 12 but the docs found out that they could make more money paying me to transcribe their tapes than to type their own notes in the EMR's even with templates. So we will be around for a while. Oh yea if I would have kept on with both jobs would have easily made $65 K but working 50 hours a week was getting to be a bit much.
Patti
IC taxes
One suggestion that I have for all of you that are questioning IC taxes is to look at your past tax refunds when you were an employee and see what percentage was withheld and do about the same. Yes there is that extra 7.5 for SS but it is also a deduction and you can look to find 7.5% of your pay as a deduction whether it be in the form of your own retirement fund, etc. When I saw that I was paying so much to the IRS, I decided that if I could afford that I could start my own retirement fund and did it. I now contribute close to $1000 to it per month. So go online, get an old copy of Turbo Tax and run off the schedule C's and see what deductions can be taken for a small business and then see what you can do to save in taxes. Look at your old tax returns and if you are married have your husband over withold if you can't do it yourself. You are not paying that much more when you work for yourself you are just in charge of paying them yourself and not allowing someone else to hold it out from your check. But look at old returns, plan, plan and plan. When you look at your net vs your gross that will tell you what percentage your employer is holding out. Either as an employee or an IC we all pay our "OWN" taxes but as an employee someone just does it for you. Good luck to all of you. Patti
TAXES~~
You get to deduct sooooo much, part of your housing, utilities, any supplies such as printer paper. Last year I made about 40,000 and once the deductions were complete, it was right at about 8000 (have kids to deduct of course so that helped)
taxes
I live in Alabama and have always been employed in Georgia. Other than the time I was an IC, we always filed both Alabama and Georgia tax, whether I did the work at home or not. My husband works in Alabama. The amount of the tax always pretty much balanced out. In fact, I usually got a refund from both states, just more for one than the other. As an IC, I only file an Alabama return, as that is where my "home business" is located, no matter where my "clients" are.
Taxes
If you are talking about tax deduction the answer is no. If you are an employee and the company is taking out your taxes, etc. you are not considered an independent contractor. If you are SELF-EMPLOYEED...then the answer would be yes.
Taxes
Maybe they do that because they don't have to pay SS, or withhold any taxes for them since they don't live here. Maybe we need to put the bug into the government's ear that they are losing out on a lot of money here by allowing them to do this and you know how the government loves money. Just a thought.
IC and taxes
Is it a pain to do taxes when you are an IC? What do you all do?
IC taxes
Go here: https://www.eftpssouth.com/Eftps/
This is for federal taxes and you can pay on a weekly, daily, monthly, etc basis. As far as expenses deductible, you really need to do some research - you can deduct all expenses related to the running of your business. Best thing to do is have a room in the home/apt totally devoted to work and you can then take that % of home as a deduction. You obviously know very little about this stuff or you wouldn't ask that question. I would suggest getting the IRS instruction booklet on home office and the one on business expenses and reading it thru thoroughly. If you are not good at this stuff, then hire someone to do your first year and learn.
IC taxes
Will do that. Thanks for your input.
taxes
They are right in that the SS is 15.7% but remember when you were working for someone they held out 7.5% from your check. Look back at your checks as an employee and see what was held out -- the only diference from being an IC is that you have to be responsible to pay the taxes and not have someone withold them for you. Also look to see what deductions you have, take those off and you pay 15.whatever of that amount in SS. It all depends on what you are making. I start out with 45K+ and pay SS on about 15K. But I have a retirement fund that I am contributing to and that takes a lot off. But if you look at your paycheck as an employee you will see that 20 to 25% is being taken out of your check and you ARE paying those, someone just makes sure it is deducted. If you husband is working as an employee (my ex-was) I had him hold out as single none and we always got something back. Either way as an employee or an an IC -- we allpay it in the end.
IC Taxes??
I have recently taken a job as an IC, this is my first IC position and I was wondering if any of you wise folks could give me some advise regarding income taxes and such.
In the past I have always used TaxCut or TurboTax for my income taxes. Is there a similar product for the 'self employed' that is as helpful? Does anyone have any experience with any of these?
Also, MUST I pre-pay taxes and/or SSI quarterly? I ALWAYS get all my taxes I pay in back in a refund and my income is essentially the same as my previous employment.
Thanks!
You actually mean net? After taxes? nm
x
taxes
Haven't started mine, but for the first time in ages, I have only one 1099! Should be pretty simple.
TAXES.
I am new to this IC tax stuff. This is my first year doing this, and I have no idea what I am in for at tax time. I only work part time, and I bring in about 350 every two weeks. Should I be paying in quarterly? Any tips for tax time? Thanks in advance for your help.
Taxes as IC
Are you married -- did you have your husband over withold to cover your taxes? Do you have receipts for any programs, computer, etc. that you bought? Do you use part of your house solely for your business? Do you use an internet service for your business, phone? You need to buy Turbo Tax or talk to an accountant if you are unsure as to what to claim and not claim. But anything that pertains to your business is deductible. Turbo Tax takes you through it step by step. Mileage to the bank to deposit, buy supplies, any business related errand is deductile. You will have to pay 15% on your NET income that is why you want as many deductions as you can get. Again, if you are married have your hubbie over withhold even if it is a certain amount of one less deduction if you have kids to cover your taxes. When you see what you owe -- if you do this year you can then divide that by how may pay periods and have him withold that much. But dig for those deductions. E-mail me with any questions.
Taxes (sm)
We used to pay a CPA at the end of the year to do our taxes, claimed all our exemptions, equipment costs, office costs (if applicable), phone, etc.,on a Sched. C for me and my husband's W2, then we both were IC's and he did two Sched. C's and all he did was give us 4 slips for next year's "estimated" tax to send in a check quarterly. If we found we were making more, we were to call him and he would adjust our quarterly payment to more, it usually worked out. If you're an employee, then it will be different, I was self-employed, helped to keep track of all expenses, postage, phone, books, etc., anything to do with my profession. Perhaps you are not an IC but this worked for us, if you have kids, then the acct. would take this into consideration. Perhaps you'll get a "surprise" refund for the "kiddos." Good Luck! Have a "fruitful" year!
Taxes
In 18 years of filing as an IC and owner, have never paid quarterly while married. Always had my husband over withold and even some years had to pay a little (under $500) but they have yet to question (knock on wood). But my income and write-offs always stay about the same, every third year a new computer, then the next a printer, then some transcribers, etc. The government does not care who or where the tax money comes from when filing as a joint return as long as they get it. You are just combining your income as if each of you had a job but you are an I/C instead and don't have someone withholding from your earnings.. I always filed electronically and had my refund within a week. Heck you can borrow the money to pay your taxes and they don't care as long as they get paid.
Patti
taxes
Can anyone give me a list of things that I am able to deduct for working at home. I am new at working at home and need some specifics.
Thank you!!
taxes
Unless you have a special reason for needing to pay H&R Block to do your taxes, you can do free file with H&R Block online. You access it through www.irs.gov. A lot of people don't know that there are companies out there where you can electronically file for free. Most of them don't include free state filings, but my daughter found one last year that did both of hers for free. It isn't a program that is widely publicized. I only found out about it through a tax newsletter that I subscribe to. We have two different businesses this year, though, and I'm not sure I'm going to have the knowledge to do everything, but I'm still going to give it a try. They walk you step by step through the whole process. You answer questions at the beginning and it brings up forms and steps in the order you need to file. It's worth looking into. Actually the IRS has a lot of helpful information regarding filing. Tax Hotline calls it "surprisingly good," and said it's recently been redesigned to make it even more useful. Why pay somebody to do something you can do yourself?
IC - taxes, etc.
Hi, I'm an IC for a company and am considered self-employed. I am having H&R do mine for the first time. I am going to check into deductions for expenses. I am hoping for the best.
Taxes
I have used H&R Block in the past about 4 years ago I think. It was a lot more expensive than I thought it would be, around $200 I think, but I had some extra stuff to do because of some divorce issues and they charged by every form they have to do. But on the other hand it was worth it because it was my first year as IC and after that I just followed what they had done to do the next years' taxes using TaxCut myself.
Taxes
I know for an IC we have to fill out Schedule C and Form 8829 for expenses. But do we HAVE to fill out Part III, depreciation of the house? I only made some $1400 (working very, very, very contingent) so why would I need to do that? I had a lot of expenses, though, to write off as I had computer repair, monitor, foot pedal, etc. Help
Taxes...
You pay the taxes for the state where you reside. You don't have to pay state taxes for the state your company is physically located in. You should receive a 1099 from your client and that is what you use to file your taxes. It may be best to have an accountant do your taxes for you this year just so you get answers and feel confident enough to do your own. Good luck 
taxes
Hi, Pat. I have also been doing a lot of research on home office deductions since this is the first year I have had a mortgage instead of just renting. It is my understanding that if you deduct for portion of your home mortgage interests and taxes for business office that you also have to do the depreciation part too. If you don't fill it in, it will be still be counted in the end as if you did anyway when you sell your home since you took the mortgage deduction and depreciation goes along with it. You wouldn't have to pay taxes on profit of the sale on the business portion of your home since they changed that in the last few years (I think it is something like up to 250,000 profit per single filer) but you would have to pay taxes on the depreciation even if you didn't claim it. Hope this makes some sense. I think it's form 505 on IRS website that has the info. It's all really confusing. Was much simpler when I was renting!!
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