1099 Employee (Independent Contractor)?

Question

I have an offer from a company to work with them as a 1099 Independent Contractor. However they are telling me what they'll pay me ($500/wk) and determinining the deliverables. As a contractor, do I legally have a say in both the pay and what will be done?

Also, it is a small start-up company, and they are paying all of their "employees" as contractors to save the company money. Is this shady?

I've always been a W2 employee, so any advice/input would be greatly appreciated!

Answer 1

If they're determining the pay and the deliverables, but you can do the work wherever you want to and how you want to as long as you provide the defined deliverables on the agreed timeline, then it would be legal to classify you as an independent contractor. If they expect you in their office 8-5 Monday thru Friday or some schedule like that, then you'd be an employee.

Answer 2

the deadline for filing individual taxes, be it W-2's or 1099's is the same, 4/15/ with one extension to 10/15 independent contractors should be paying their taxes quarterly on 1040ES, April 15, June 15, Sept. 15, and Jan 16, 2011 for 2010 taxes and yes, as an employee the employer withholds taxes including income and independent contractor is exactly what the name implies, independent I would assume you are probably not in a proper employment status and if you would like to have that determined for you request an SS8 from www.irs.gov, complete it, submit it to IRS and let them tell you if you are independent or not

Answer 3

Erin,
as a 1099 contractor , the company determine the pay and description. u accept or not.
as 1099 contractor , u are responsible for fed/state tax, ss taxes, ur own biz expenses.
u can not pay unemployment or workman's comps because 'u' are a biz not employee.
the hours of operation are not the same as hours of working. the company can say u are to be available certain hours and u not be an 'employee'.
many companies start as 1099's. nothing illegal. if they have office staff as contractors not employees that is a problem for them not u.
as u maybe doing deliveries u can 1099 it.
if u drive their vehicles then u are a Employee.

Answer 4

as a contractor your a "Business" and will be required to pay, federal / state income tax, unemployment tax, Workman's comp. Medicare tax, self employment tax, after your tax bite, you will receive about 250.00 a week!! Be very careful when bidding contracts, after being signed they are legally binding on both parties.. Good Luck