FW: Question: 1099 status and agencies

Subject: FW: Question: 1099 status and agencies
From: Lynn Perry <clperry -at- WALLDATA -dot- COM>
Date: Wed, 3 Jun 1998 15:03:55 -0700

I never use the term 1099. I just call it contracting. The accounting office
for the places I work usually handle the rest. Your Federal tax number is
your social security number unless you are incorporated. In Washington
State, you can register with the state and get a UBI number (Universal
Business Identifier? something like that). This comes from the state,
though. You can also register your company name if you are using one to do
business. The bank is interested in that, and I always tried to use my
business bank accounts (which listed me as my name, DBA Avalon and
Associates, my company name) to pay business-related costs. It makes tax
time so much easier.

The Feds care about your SS# and getting their taxes. You should do
estimated quarterly taxes unless you expect no money in a quarter or you
prefer to pay penalties at year end when you pay taxes (talk to an
accountant to determine which might work better for you).

I spent three years strictly contracting. Each company automatically sent me
a 1099 at tax time. You just want to make sure you keep them apprised of
your current address.

Lately, there has been discussion about companies being responsible for
taxes for 1099-paid contractors. This is apparently what has made companies
less willing to use contract services and choose instead to go through
contract agencies (because your wages are then W-2 instead and IRS believes
they get more taxes this way). According to some accounts, this has severely
impacted contract business, though I can't confirm or deny that.

HTH
LyP
clperry -at- walldata -dot- com
My opinions are mind; not Wall Data's. We both like it that way.

> ----------
> From: Christine Davis and Ron
> Sering[SMTP:cdavis -at- CARBON -dot- CUDENVER -dot- EDU]
> Sent: June 03, 1998 1:43 p
> To: TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU
> Subject: Question: 1099 status and agencies
>
> Hello all! Glad to be back on the list. They closed the field office where
> I worked, and I'm trying to hit the trail as a contractor. I'm trying to
> get independent work on 1099 status, and so far it is not easy. I've
> discussed doing 1099 work with a couple of agencies, and they are
> absolutely not interested. They tell me I need a company name and Fed tax
> ID number. That is not 1099 status as far as I can tell, but then what do
> I know? This could just be a way for agencies to dodge the issue, who
> knows? Is it equally difficult to contract directly with clients on a 1099
> basis?
>
> Any commments, private preferably, would be appreciated. I will summarize
> on the list later on.
>
> Thanks!
>
> ~
>
>




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