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Subject:Re: Help for new contractor From:Karen Steele <Kstle -at- AOL -dot- COM> Date:Mon, 15 May 1995 19:05:46 -0400
Scott asks about taking a "freelance" project:
> 1) What are my tax responsibilities? I've seen a recent
> thread on this that has answered a number of my
> questions, but I missed the name and number of the
> IRS document that spells out the difference between
> employees and independent contractors.
> 2) How can I keep from being underpaid?
1. If you are hired as an independent contractor (1099 status),
you must pay all your own taxes on your "net" income. (Net
of business expenses.) This includes the employers portion
of Social Security. (You could also be subject to the contractors
test by the IRS -- but that's another subject!) If you are hired
as a temporary employee, your employer must make the tax
payments (from both your pockets) exactly the way your
company does.
2. The most popular question of all! To know what contract rates
in your area are, check the Society of Technical Communication
Consulting & Independent Contracting Profession Interest
Committee (STC C&IC PIC) Membership Survey for 1994/1995.
It will furnish you with the reported rates in your part of the
country.
If you don't have a copy of the survey, it will be printed in the summer
issue
of C&IC PIC newsletter. To get a copy of the newsletter, you must join the
PIC. Membership in the C&IC PIC is free to members of STC. If you are a
member of STC, you can join the PIC by sending your name, address and
telephone
number to:
STC C&IC PIC
P.O. Box 451002
Garland, TX 75045-1002
Kstle -at- aol -dot- com
If you are not a member of STC, you can join by contacting your local STC
chapter,
or the international office:
STC
901 N. Stuart St., Suite 904
Arlington, VA 22203-1854
(703) 522-2075
stc -at- tmn -dot- com
Both of these issues are discussed quite often in the PIC newsletter.