TPB X thread (37 Viewers)

[MtnHusker]

 

[22*43*51]

 

[MtnHusker]

 

[MtnHusker]

 

[MtnHusker]

 

[MtnHusker]

 

[MtnHusker]

 

[MtnHusker]

 

[22*43*51]

 

[MtnHusker]

@Jim14510 explain this one to us like we are 5th graders please. Need your big accounting brain. How does this affect people & companies? Bottom line on what contractors earn versus what they would get as regular employees. I'm not sure if it is a big deal or much to do about nothing. Wish I knew more about taxes, besides just paying them

 

[22*43*51]

 

[LoudHogRider]

I had no idea Russia had tigers, let alone enough for a #2 global population of them.

 

[alt f4]

@Jim14510 explain this one to us like we are 5th graders please. Need your big accounting brain. How does this affect people & companies? Bottom line on what contractors earn versus what they would get as regular employees. I'm not sure if it is a big deal or much to do about nothing. Wish I knew more about taxes, besides just paying them

I do a lot of independant contracting. The best way it was described to me was this test, does the independant contractor make it's own managerial, marketing, purchasing, and labor cost decisions? If so they'r an independant contracator, if not, they're an employee. Two examples.

Company hires a website dev who purchased own computer, markets himself/herself, and sets their rates would be an independant contractor.
Now if a company provides a computer/software or sets the hourly rate in which that person will receive it's an employee.

Contractor hires an indepentant contractor for landscape. That landscaper doesn't set schedule or completion date, doesn't set price is now an employee, not an indepentant contractor. In order to be considered an indepedant contractor he/she must set their own price and completion date.

In short all manager level decisions, all tools or supplies used, price, and project timelines/dates must be set by independant contractor.

 

[22*43*51]

 

[Jim14510]

@Jim14510 explain this one to us like we are 5th graders please. Need your big accounting brain. How does this affect people & companies? Bottom line on what contractors earn versus what they would get as regular employees. I'm not sure if it is a big deal or much to do about nothing. Wish I knew more about taxes, besides just paying them

1099 pays their own tax, not eligible for benefits, can deduct expenses.

W-2 employee pays half of SS and Medicare, benefits, can't deduct expenses but potentially get reimbursed.

1099 generally better for company. W2 generally better for worker. Of course exceptions both ways.

 

[Jim14510]

I do a lot of independant contracting. The best way it was described to me was this test, does the independant contractor make it's own managerial, marketing, purchasing, and labor cost decisions? If so they'r an independant contracator, if not, they're an employee. Two examples.

Company hires a website dev who purchased own computer, markets himself/herself, and sets their rates would be an independant contractor.
Now if a company provides a computer/software or sets the hourly rate in which that person will receive it's an employee.

Contractor hires an indepentant contractor for landscape. That landscaper doesn't set schedule or completion date, doesn't set price is now an employee, not an indepentant contractor. In order to be considered an indepedant contractor he/she must set their own price and completion date.

In short all manager level decisions, all tools or supplies used, price, and project timelines/dates must be set by independant contractor.

Basically defining the control aspect a little more. Rules really didn't change much but there was a lot of ambiguity in old rules allowing companies to take advantage.

The biggest change is in regards to an individual that works for only one employer. Doesn't set their own rates. Doesn't really matter if it's an hourly or flat fee amount but the easiest example is Uber. Uber the company sets the amount for what an individual is getting paid. Not the individual doing the work. Similar to your landscaper example.

If landscaping company gives homeowner an amount to do a project. Then pays individual an hourly rate to work on said project. The individual is an employee not an independent contractor. Really always was. The way they got around it is they make that individual use their own tools, set their own hours, and not restrict them from working for just that landscape company.

 

[1HuskerDad]

 

[dsbigred1]

I had no idea Russia had tigers, let alone enough for a #2 global population of them.

Where is Siberia..?

 

[Mr.Bojangles]

I had no idea Russia had tigers, let alone enough for a #2 global population of them.

Maybe they can do God's work and snag Vladimir for us.

 

[LoudHogRider]

Where is Siberia..?