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Re: Transition from employee to consultant--any gotchas?

Subject: Re: Transition from employee to consultant--any gotchas?
From: Dick Margulis <margulisd -at- comcast -dot- net>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Thu, 26 Aug 2004 08:52:31 -0400




Giordano, Connie wrote:



Obviously severance and unemployment varies rather widely from state to state, and it seems like Dick did the smart thing and checked with his home state. In the meantime, one other potential gotcha that I haven't seen mentioned yet. Unemployment compensation is reported to the IRS as 1099 income. So remember that you'll be paying taxes on it.



Actually, one of the questions the Connecticut representative asked me yesterday was whether I wanted taxes withheld from benefit payments. That's an option I never encountered in previous periods of unemployment, either.


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References:
RE: Transition from employee to consultant--any gotchas?: From: Giordano, Connie

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