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What you're doing is illegal. You are not a contractor, you're an employee. Your father could be in hot water. Just because he says "You are a contractor" doesn't make it so. Kind of amazing though that your own dad is willing to ********* out of unemployment insurance and payroll-- and for no apparent reason.
What you're doing is illegal. You are not a contractor, you're an employee. Your father could be in hot water. Just because he says "You are a contractor" doesn't make it so. Kind of amazing though that your own dad is willing to ********* out of unemployment insurance and payroll-- and for no apparent reason.
Do not be so harsh on Dad. With what I know now, I would rather be on a 1099 and let me take care of things.
To the OP. Form an LLC and get some additional 1099 income. Now you own a business with various incomes. You will love being able to do an IRS Schedule C.
Give me 1099 income ad I will show you a few dance steps......LOL
Why, because 50 guaranteed hours a week means that the father would have to offer the son benefits? Just curious.
No, there are no benefits with independent contractors. 50 hour a week guarantee isn't done with indies. It's a good way to get in trouble with the IRS for pretending you have an indie contractor when you really have an employee.
I think the OP will have trouble with a mortgage as there is no guarantee of long term consistent income with independent contractors. That's kind of the point of them.
Question: I worked for six years wrongly categorized as independent contractor getting a 1099 when it should have been w2. Am being let go... Can I get unemployment benefits? Will my employer get into trouble if I apply?
Question: I worked for six years wrongly categorized as independent contractor getting a 1099 when it should have been w2. Am being let go... Can I get unemployment benefits?
It is unemployment insurance. Your employer paid into the fund for all his employees. You were not a employee, so you do not get "unemployment benefits".
As a contractor, you were paid more than an employee would be as you had to pay:
1. the self-employment social security and medicare tax
2. for your own health insurance
3. to set up your rainy day fund for this impending event
I'm also questioning whether you are really a 1099 independent contractor or are actually an employee. Here's a good guideline that you and your father should read:
Houston-dan is incorrect - this WILL be a problem with your mortgage. Primarily because you do not have 2 years of tax returns as a 'self-employed person.' And getting a 1099 form is the same thing as an independent contractor is the same thing as self employed. Be prepared to be turned down for the mortgage unless you are able to switch back to W-2.
Houston-dan gave you some GREAT information about paying quarterly taxes. Spend some time reading about it and DO IT. And remember, you'll have to be paying another 7.5% above what you used to pay for the self-employment tax portion of Social Security/Medicare. You also will not have any unemployment benefits, paid vacation, paid days off, employer provided medical insurance, etc. Get your own medical insurance AND long term disability insurance.
How was I able to get approved for a $60k truck loan and $60k rv loan at 24 years old without providing any proof other than my word of mouth? I mean they may have called my 1099 employers but I doubt it.
Quote:
Originally Posted by winkosmosis
What you're doing is illegal. You are not a contractor, you're an employee. Your father could be in hot water. Just because he says "You are a contractor" doesn't make it so. Kind of amazing though that your own dad is willing to ********* out of unemployment insurance and payroll-- and for no apparent reason.
Uhh no its not. Contractors typically make far more for not getting these benefits. I dont get health insurance and job security, but instead I get paid FAR more plus $1120/wk of tax free per diem to cover my living expenses since I travel.
I can get good blue cross blue shield private insurance for $120/mo. Ive turned down job offers for 90k and a different for 100k today because I'd rather not have benefits but keep my higher 1099 day rate and per diem instead of the "job security"
Quote:
Originally Posted by Jkgourmet I'm also questioning whether you are really a 1099 independent contractor or are actually an employee. Here's a good guideline that you and your father should read:
Houston-dan is incorrect - this WILL be a problem with your mortgage. Primarily because you do not have 2 years of tax returns as a 'self-employed person.' And getting a 1099 form is the same thing as an independent contractor is the same thing as self employed. Be prepared to be turned down for the mortgage unless you are able to switch back to W-2.
Quote:
Originally Posted by houstan-dan
How was I able to get approved for a $60k truck loan and $60k rv loan at 24 years old without providing any proof other than my word of mouth? I mean they may have called my 1099 employers but I doubt it.
Because the cars themselves were the collateral for the loan. And you probably put money down or had a trade in. And I'd bet you have OUTSTANDING credit.
Cars are easy to repossess. Houses are not. Cars are less expensive than houses. Both of those facts limit the risk to the lender. Which is why it's easier to get a car loan than a mortgage (as well it should be!)
Quote:
Originally Posted by Jkgourmet I'm also questioning whether you are really a 1099 independent contractor or are actually an employee. Here's a good guideline that you and your father should read:
Houston-dan is incorrect - this WILL be a problem with your mortgage. Primarily because you do not have 2 years of tax returns as a 'self-employed person.' And getting a 1099 form is the same thing as an independent contractor is the same thing as self employed. Be prepared to be turned down for the mortgage unless you are able to switch back to W-2.
Because the cars themselves were the collateral for the loan. And you probably put money down or had a trade in. And I'd bet you have OUTSTANDING credit.
Cars are easy to repossess. Houses are not. Cars are less expensive than houses. Both of those facts limit the risk to the lender. Which is why it's easier to get a car loan than a mortgage (as well it should be!)
A house, however, well hold its value FAR better than a brand new truck or 5th wheel.
I do have good credit, though. I put only a few grand down on each.
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UI paid when paid incorrectly as IC?
