Originally Posted by
QuietSpike
If you are contract with a company, make sure you are "contract"-- meaning YOU choose your days that you work, you are not TOLD when to be at work, etc. The IRS has definitions of "contractor" on their website, I suggest you look at them.
If you are not, it is the company that gets in trouble, not you...but you still need to know the difference between being a "contractor" and an "employee".
Excellent point, QS!
Also, I agree. They need to issue you a 1099. I invoice my clients either monthly or bi-weekly (depends on the client and what we agreed upon). At the end of the year, they send me a 1099. I usually set aside 30% of my gross earnings for taxes. Only net income is taxed, but 30% of the larger number typically gets me a little wiggle room at the end of the year. I also make quarterly estimated payments. Keeps me from having to pay a penalty/interest/bla bla bla.
-mini