Hi Todd, . . .Because anyone working as a W2 employee is NOT a contractor! A W2 employee is just that, an employee. Among other things, the IRS can look (as in an audit) at any W2 work performed in the past or future, if it is similar to or otherwise intertwined with other 1099 services that you may or will provide in the future, and use it as a precedent to disallow other 1099 work.
Think of it this way. Your client probably does not hire W2 employees to repaint the office walls, or replace the carpet in their building. Tell your client that you are a contractor, period. Tell the cllient that you have other clients and cannot commit to W2 employment. Again, take another look at the guidelines at this link: http://www.hasys.com/systems/20_factors.pdf . Also consider this: if the client wants to employee you as a W2 employee, then they should pay FICA/FUTA withholdings, workman's comp, other insurance and benefits (ask about their dental and vacation plans). Actually, Todd, my wife is a tax attorney, and does a lot of corporate work. If you'd like some additional clarification, email me back and I'll ask her to remind me of some more examples. Remember, like I mentioned before, your situation is another example of the corporation not wanting to contract with an individual. On the other hand, . . .would becoming a full-time employee of your client be something that appeals to you? OTTF, Ron W. ----- Original Message ----- From: Todd W To: beginners@perl.org Sent: Wednesday, February 23, 2005 5:29 PM Subject: Re: [Maybe OT] . . .the Contracting Business "Ron Wingfield" <[EMAIL PROTECTED]> wrote in message news:[EMAIL PROTECTED] <snip /> > Always contract for 1099 payment -- Never, never W2! Can I ask why? I landed some telecommuting work I've been doing for about a month now and the proprietor wants to move me to a W2... Thanks, Todd -- To unsubscribe, e-mail: [EMAIL PROTECTED] For additional commands, e-mail: [EMAIL PROTECTED] <http://learn.perl.org/> <http://learn.perl.org/first-response>
