I do cleaning for an elderly lady. She ran an add in the local paper. I have worked for her for over a year (here and there...not steady, daily or even weekly...more on a as needed basis) Well after a year she now wanted me to fill out a w-9. Will this screw my taxes up as I already work for 2 businesses that are w-9. Should I up my cleaning rates to compensate for what I may have to pay at the end of the yr. ? How should I handle this situation. I have to supply her with my SS# today. Any advice on this matter is greatly appreciated. Also if she provides this W-9 does she have to supply me with workmans comp. or unemployment or anything in general?
2007-03-03 02:52:37 · 4 answers · asked by slykitty 3 in Business & Finance ➔ Taxes ➔ United States
Unemployment Insurance is what I meant
2007-03-03 02:55:46 · update #1
The W-9 just means that she intends to provide you with a W-2. You should discuss with her if that is the best for each of you. If you are doing cleaning for a number of people that would not be necessary as you are a service provider. Generally you would be better off receiving your earnings on a 1099 Misc.
2007-03-03 03:21:58 · answer #1 · answered by ? 6 · 0⤊ 3⤋
If you made more than $600 from her last year then you need a W-9 and must pay the taxes on it. No she is not required to provide workmans comp or unemployment insurance as you are a free lance worker.
2007-03-03 03:48:14 · answer #2 · answered by elaeblue 7 · 0⤊ 0⤋
If you're working on a W-9/1099, she doesn't have to cover you for unemployment comp or workers comp, or withhold taxes from your check. Yes you'll have to pay taxes on the amount, along with self-employment tax, which you probably already know if you have other jobs that are also 1099 type jobs.
What you charge for your cleaning services are between you and the person you're cleaning for.
2007-03-03 13:36:57 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Your company would be responsible for paying the tax. Self employment tax is social security and retirement tax.It can't be avoided. I have been self employed for 34 years and have never been able to beat this tax. When you are employed by a company the company pays 1/2 of your taxes and you are responsible for the other.By starting a company your income will be reduced because of the company having to pay these taxes.Sure it is deductible but you will have to then pay unemployment tax and being self employed you can never claim unemployment benefits. So get an accountant and discuss these issues.Maybe they will be able to help.
2016-03-28 22:15:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋