Originally posted by Corndog
There's no such thing as tax free.
He might mean that you get your full check, but that doesn't mean you don't have to pay taxes on it lol
This. To him, under the scenario of you being considered an independent contractor, he pays none of your taxes. The responsibility is on you to take care of both sides (the employee AND the employer) of your FICA taxes. You'll have to pay your taxes come next April (or you'll handle things quarterly). Just budget them out as the money comes in, so you don't overspend. You're going to owe at the end of the year, but if you've accounted for it there's no big deal.
foo is under the right path with expensing EVERYTHING. Track your mileage, with a log-book and photos of your odometer at year start and year end. It sounds tedious, but it's worth the two seconds.
Consult a CPA-friend, though.
There's no such thing as tax free.
He might mean that you get your full check, but that doesn't mean you don't have to pay taxes on it lol
This. To him, under the scenario of you being considered an independent contractor, he pays none of your taxes. The responsibility is on you to take care of both sides (the employee AND the employer) of your FICA taxes. You'll have to pay your taxes come next April (or you'll handle things quarterly). Just budget them out as the money comes in, so you don't overspend. You're going to owe at the end of the year, but if you've accounted for it there's no big deal.
foo is under the right path with expensing EVERYTHING. Track your mileage, with a log-book and photos of your odometer at year start and year end. It sounds tedious, but it's worth the two seconds.
Consult a CPA-friend, though.
Edited by InRomoWeTrust on Jun 23, 2014 11:08:26
Edited by InRomoWeTrust on Jun 23, 2014 11:08:11






























