Comments on: So you want to be an independent contractor? http://embeddedgurus.com/stack-overflow/2010/02/so-you-want-to-be-an-independent-contractor/ Thoughts on embedded systems by Nigel Jones Thu, 09 Feb 2012 07:32:39 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Nigel Jones http://embeddedgurus.com/stack-overflow/2010/02/so-you-want-to-be-an-independent-contractor/comment-page-1/#comment-433 Nigel Jones Sat, 13 Mar 2010 13:11:37 +0000 http://www.gfcdev.org/test-stack/2010/02/19/so-you-want-to-be-an-independent-contractor/#comment-433 Sounds like good advice to me. For the non Californians, can you explain what the EDD is and the role they play? Sounds like good advice to me. For the non Californians, can you explain what the EDD is and the role they play?

]]> By: Chip http://embeddedgurus.com/stack-overflow/2010/02/so-you-want-to-be-an-independent-contractor/comment-page-1/#comment-429 Chip Sat, 13 Mar 2010 02:08:38 +0000 http://www.gfcdev.org/test-stack/2010/02/19/so-you-want-to-be-an-independent-contractor/#comment-429 Speaking as an small business employer of contractors in California, I will say that after being shaken down by the EDD, I will never again hire an independent contractor directly. I will only hire corp-to-corp, with the contractor being an employee of the other corporation. It is fine if that other corporation has only a single employee. EDD's definitition of an independent contractor is so narrow as to be virtually impossible to fulfill and even harder to prove. Then the EDD shakes down the employer for back payroll taxes on all past contracts, while the IRS shakes down the contractor. Double-dipping at its finest. I'll condemn Joe Stack, but I also understand his frustration. The best advice I can give to someone who wants to be independent is to form an S-Corporation and treat yourself as both your own employee and your own boss, depending on whether you are working or paying at the moment. Find a good accountant and pay your taxes. Speaking as an small business employer of contractors in California, I will say that after being shaken down by the EDD, I will never again hire an independent contractor directly. I will only hire corp-to-corp, with the contractor being an employee of the other corporation. It is fine if that other corporation has only a single employee. EDD’s definitition of an independent contractor is so narrow as to be virtually impossible to fulfill and even harder to prove. Then the EDD shakes down the employer for back payroll taxes on all past contracts, while the IRS shakes down the contractor. Double-dipping at its finest.

I’ll condemn Joe Stack, but I also understand his frustration.

The best advice I can give to someone who wants to be independent is to form an S-Corporation and treat yourself as both your own employee and your own boss, depending on whether you are working or paying at the moment. Find a good accountant and pay your taxes.

]]> By: Jan Kowalski http://embeddedgurus.com/stack-overflow/2010/02/so-you-want-to-be-an-independent-contractor/comment-page-1/#comment-414 Jan Kowalski Wed, 03 Mar 2010 10:12:01 +0000 http://www.gfcdev.org/test-stack/2010/02/19/so-you-want-to-be-an-independent-contractor/#comment-414 In Poland "self-employment" is art of itself. Tax system highly rewards self-employment in comparison to normal employment. Mostly due to much lower social security payments, linear tax instead of progressive and deducing expenses from income e.g car and fuel (no one cares how this car is used, your wifes car can be deduced too). Although big players on market does not use self-employment probably due to legal complications and company policies. It is also theoretically possible that You will be reclassified as employee by tax office, but this hardly ever happens. Smaller software company often have part of their actual employees, working for them as "external service". Although the real consultant market isn't that much developed. In Poland “self-employment” is art of itself. Tax system highly rewards self-employment in comparison to normal employment. Mostly due to much lower social security payments, linear tax instead of progressive and deducing expenses from income e.g car and fuel (no one cares how this car is used, your wifes car can be deduced too).
Although big players on market does not use self-employment probably due to legal complications and company policies. It is also theoretically possible that You will be reclassified as employee by tax office, but this hardly ever happens. Smaller software company often have part of their actual employees, working for them as “external service”. Although the real consultant market isn’t that much developed.

]]> By: Nigel Jones http://embeddedgurus.com/stack-overflow/2010/02/so-you-want-to-be-an-independent-contractor/comment-page-1/#comment-411 Nigel Jones Sun, 21 Feb 2010 01:06:18 +0000 http://www.gfcdev.org/test-stack/2010/02/19/so-you-want-to-be-an-independent-contractor/#comment-411 It's been so long since I worked in the UK that I was not aware of this David - so thank you - it was very interesting. I sometimes get asked the difference between a consultant and a contractor. For me one of the major differences is exactly your last criterion. That is consultants work out how to achieve goals while contractors are given specific assignments. If you agree with the dichotomy,it sounds like 'contractors' are on pretty shaky ground in the UK.It would be great to hear from other readers how the rules work in other parts of the world. It's been so long since I worked in the UK that I was not aware of this David – so thank you – it was very interesting. I sometimes get asked the difference between a consultant and a contractor. For me one of the major differences is exactly your last criterion. That is consultants work out how to achieve goals while contractors are given specific assignments. If you agree with the dichotomy,it sounds like 'contractors' are on pretty shaky ground in the UK.It would be great to hear from other readers how the rules work in other parts of the world.

]]> By: david collier http://embeddedgurus.com/stack-overflow/2010/02/so-you-want-to-be-an-independent-contractor/comment-page-1/#comment-410 david collier Sat, 20 Feb 2010 13:49:56 +0000 http://www.gfcdev.org/test-stack/2010/02/19/so-you-want-to-be-an-independent-contractor/#comment-410 The situation in the UK is exactly the same - there are plenty of people being paid as "self-employed" who would never stand up to any scrutiny.The biggest piece of advice is the "get yourself multiple customers" one - if you are doing highly technical stuff for 4 or 5 different people at once you will probably not get a huge amount of scrutiny on what hours you work.The other criterion used over here is "are you told what to achieve or told how to achieve it" - if you work towards project goals in your own way, that's good - if you come in each mormning and fight todays fire undr orders, it won't wash.D The situation in the UK is exactly the same – there are plenty of people being paid as "self-employed" who would never stand up to any scrutiny.The biggest piece of advice is the "get yourself multiple customers" one – if you are doing highly technical stuff for 4 or 5 different people at once you will probably not get a huge amount of scrutiny on what hours you work.The other criterion used over here is "are you told what to achieve or told how to achieve it" – if you work towards project goals in your own way, that's good – if you come in each mormning and fight todays fire undr orders, it won't wash.D

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