TechWhirl (TECHWR-L) is a resource for technical writing and technical communications professionals of all experience levels and in all industries to share their experiences and acquire information.
For two decades, technical communicators have turned to TechWhirl to ask and answer questions about the always-changing world of technical communications, such as tools, skills, career paths, methodologies, and emerging industries. The TechWhirl Archives and magazine, created for, by and about technical writers, offer a wealth of knowledge to everyone with an interest in any aspect of technical communications.
Contractor-to-employee fact you might want to know
Subject:Contractor-to-employee fact you might want to know From:"Dick Margulis " <margulis -at- mail -dot- fiam -dot- net> To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Mon, 6 Jan 2003 11:21:07 -0500
I just walked into a conversation our accounting manager was having and picked up a bit of trivia US list members might find interesting.
If you are a 1099 contractor and later become a W-2 employee of one of your clients, you cannot file both a 1099 and a W-2 for that company in the same year.
Suppose you are running your independent consulting company with multiple clients and on July 1 you drop all but one client, fire your office help, close your home office, and go to work for that one client as an employee. According to our guy, the company is supposed to report everything it paid you for the entire year as W-2 wages. You can still deduct the expenses of running your business for the first six months of the year, but your margin above that is magically transformed into wages from your former client. Isn't that neat?
The moral is: If you are contemplating such a change in status, either do it right now, or wait until next January, to avoid the headaches and possible additional tax liabilities.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
A new book on Single Sourcing has been released by William Andrew
Publishing: _Single Sourcing: Building Modular Documentation_
is now available at: http://www.williamandrew.com/titles/1491.html.
Order RoboHelp X3 today and receive a $100 mail in rebate and a FREE
WebHelp Merge Module for merging multiple Help systems on any desktop
or server. Order online today at http://www.ehelp.com/techwr-l
---
You are currently subscribed to techwr-l as:
archive -at- raycomm -dot- com
To unsubscribe send a blank email to leave-techwr-l-obscured -at- lists -dot- raycomm -dot- com
Send administrative questions to ejray -at- raycomm -dot- com -dot- Visit http://www.raycomm.com/techwhirl/ for more resources and info.
