Re: Question: 1099 status and agencies

[Sharon Burton <sharonburton -at- EMAIL -dot- MSN -dot- COM>]

Agencies spend money finding these jobs. They make money by having people as
W-2 employees by taking a part of the hourly rate the agency gets from the
employer. They are unwilling, for obvious reasons, to lose money by finding
you a job and not make money off you.

For many deals, if they find another company (the EIN and corporate status
shows you are a company) that takes the job, they get a finders fee,
sometimes thousands of dollars. Thus, their unwillingness to deal the way
you want to.

Use the agencies to find you work. Let them handle you for a few contracts.
Join and volunteer for the STC. Let people get to know you and what you can
do. Pretty soon - a year or so - you will have the contacts to find the 1099
jobs yourself.

In the mean time, work for the agencies. And remember, you probably cannot
go back to the same company as a 1099 for several years, the duration is
spelled out in your contract with the agency and the company cannot hire you
back for a certain time as a 1099 employee because of contractual terms the
company has with the agency.

This whole 1099 thing revolves around who knows you. I have been completely
1099 for several years but it took 2 years of hard work to let people know
who I am, volunteering for the STC, and such things before the jobs started
showing up. Now, I have far more work that I can handle and am trying to
figure out how to clone my skill set. Spend a few years marketing yourself
to the community that hires writers or whatever you do.

Generally, the agencies are a good thing. Work with them and let them make
their money. They work hard to find these jobs and fill them.

sharon

Sharon Burton
Anthrobytes Consulting
Home of RoboNEWS, the award-winning unofficial RoboHELP Newsletter
www.anthrobytes.com
anthrobytes -at- anthrobytes -dot- com


-----Original Message-----
From: DURL <durl -at- BUFFNET -dot- NET>
To: TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU <TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU>
Date: Wednesday, 03 June, 1998 2:33 PM
Subject: Re: Question: 1099 status and agencies


>        The only Federal Tax ID number I know of is the Employer
>Identification Number, or EIN. (at least in reference to business
>taxes...there may be others for trusts and other taxpaying entities).
>However, at least in NYS, an EIN won't let agencies or clients off the
>hook as
>far as providing taxpayer information to the IRS. Unless you're a
>corporation, with the expenses that entails (i.e., cost of incorporation
>and corporate tax), the agency/client still has to issue you & the IRS a
>1099 to let the IRS know what the agency/client pays you.
>        If it were me, I'd pursue this w/ the agency & find out what they
>think they're getting for a 1099 and a company name. I can't see how it
>solves the problem, unless they're just looking for ammo in case the IRS
>checks to see if you're a statutory employee or not. Ask. Call the IRS,
>too.
>        Mary
>
>Mary Durlak  Erie Documentation Inc.
>East Aurora, New York (near Buffalo)
>durl -at- buffnet -dot- net
>
>On Wed, 3 Jun 1998, Bergerson, Carl A wrote:
>
>> It is simple to get a Federal Taxpayer ID number. I think it lets the
>> IRS know that funds the agency disburses to that account are responsible
>> for all the taxes. I used that a couple of years ago when I
>> sub-contracted to a business that had the contract to do some
>> documentation for yet another company.
>>
>> I did not need a company name in that instance.
>>
>> Carl Bergerson
>> Mission Viejo
>> Product Information
>> carl -dot- bergerson -at- unisys -dot- com
>>
>> > ----------
>> > From:         Christine Davis and Ron
>> > Sering[SMTP:cdavis -at- CARBON -dot- CUDENVER -dot- EDU]
>> > Sent:         Wednesday, June 03, 1998 1:43 PM
>> > To:   TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU
>> > Subject:      Question: 1099 status and agencies
>> >
>> > Hello all! Glad to be back on the list. They closed the field office
>> > where
>> > I worked, and I'm trying to hit the trail as a contractor. I'm trying
>> > to
>> > get independent work on 1099 status, and so far it is not easy. I've
>> > discussed doing 1099 work with a couple of agencies, and they are
>> > absolutely not interested. They tell me I need a company name and Fed
>> > tax
>> > ID number. That is not 1099 status as far as I can tell, but then what
>> > do
>> > I  know? This could just be a way for agencies to dodge the issue, who
>> > knows? Is it equally difficult to contract directly with clients on a
>> > 1099
>> > basis?
>> >
>> > Any commments, private preferably, would be appreciated. I will
>> > summarize
>> > on the list later on.
>> >
>> > Thanks!
>> >
>> > &^~~~
>> > Send commands to listserv -at- listserv -dot- okstate -dot- edu (e.g., SIGNOFF
>> > TECHWR-L)
>> > Check out topic summaries at
>> > http://www.raycomm.com/techwhirl/topics.htm
>> >
>> >
>>
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