Re: Question: 1099 status and agencies

[Barbara Roll <broll -at- MICROSOFT -dot- COM>]

Years ago I was a qualified independent contract (1099 status). Basically,
this means that you are your own business. Your Federal Tax ID number is
your social security number unless you incorporate.

It's quite possible that the agencies are concerned about their own
liabilities to you in the event that either the IRS determines that you
don't fit the independent profile or you decide to sue for back taxes and
benefits. (It happens.) The IRS has very specific guidelines for this. When
I obtained my IRS-approved independent status, I believe the form was called
SS-8.

In addition to the business name, I remember requirements that I meet the
following criteria:
** The companies you write for are your customers. They dictate the end
result they want. You dictate how to get there.
** You work on specific projects with beginning and end dates.
** You have office space and equipment of your own (not provided by your
customer). In most cases, you DO NOT do all your work for the customer at
their site.
** Customer does not dictate your working hours.
** You have more that one customer, and no single customer comprises more
that a certain percentage of your work.
** You have all business licenses required by your city and state.
** You have the other trappings of a business: letterhead, brochures,
advertising, business phone line, business bank account, etc.

If you can't meet the IRS criteria, it's often in the best interests of the
company to hire you as a temporary agency employee.


-----Original Message-----
From: Christine Davis and Ron Sering [mailto:cdavis -at- CARBON -dot- CUDENVER -dot- EDU]
Sent: Wednesday, June 03, 1998 1:43 PM
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!