Changing from an employee to independent contractor?

Question

What do I need to do if I am changing to self employed???? I have heard things about liability insurance and becoming and cooperation.

I am a dental office consultant training offices on management, also I will not be having any staff working for me.

Answer 1

Depending on the employer some would require you be self insured. If the employer does not require that (which would be a bit nuts if he/she did not) fine, and you would be responsible to pay your own taxes. Many believe if you are injured the employer would not be liable. Not true. If you work in the employer's office and not independently outside of the work environment they would be very liable and in some serious trouble. What occured at my last place of employment with two of the independent contractors. I work as an independent contractor on the side and I carry no insurance nor have I incorporated myself, but I am not working at these particular clients businesses. I go when I have to (meetings) and then I leave. I file my taxes (they would send you a 1099-G) and pay whatever taxes I may owe. This year I got lucky since my expenses superceded my income.

Answer 2

What you need to do depends upon the field you are entering.

Keep in mind that you will be responsible for any licenses, liability and health insurance, and taxes, both local, state, and federal. Remember you will have to pay the full 15% Social Security tax too. Right now your employer pays 7.5% and you pay 7.5%.

If you plan to have salaried employees, even part time, you will need to consider Workman's Comp and Unemployment Insurance plus that Social Security contribution.

If your employees are also subcontractors, you cannot tell them "when" to work, "where" to work, or how many hours to work. They cannot be required to keep hours specified by you. If you do any of that, they are not subcontractors and the employee rules and taxes apply.

Hope this helps.

Jim
http://on-line-tribune-work-from-home.blogspot.com

Answer 3

First of all, when you go into business for yourself, always invest in liability insurance. Also, remember to pay taxes and social security. This is very very important to you later when you go to retire. Incorporating is not necessary till you achieve some size and have to hire other people, The big thing is to remember that you are personally liable for everything you do. Be honest and trustworthy and the world will beat a path to your door.

Answer 4

As an employee, your employee is liable for your mistakes and accidents.
As an independent contractor, you are, so you'll have to carry insurance. .
Also, as an employee, the employer witholds taxes and sends them to whjere they go, (income tax, social security) as an independent contractor, you are.
Also, an employer might provide certain benefits, such as paid holidays and vacations, health ins, as an independent contractor,no such benefits are provided.

Answer 5

you will could desire to pay Self Employment tax 15.3% however the corporation 0.5 is tax deductible. it is the corporation 0.5 and the worker 0.5 of Social protection and Medicare. The IRS has quite a few rules concerning who can and cant be categorised as an self reliant contractor, verify the IRS website to make certain if it is legal. reward contain which you have extra administration over the way you do your artwork, and taxes are no longer taken out of your verify so which you will % to pay them each and every time.