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They are told their gross revenue. Their profit is how much they earn.
Time for someone to retake Business 101.
Again.. Why on earth would Amazon calculate their potential profit???? How would they even do that?? Everyone's expense is different.
You said it yourself, independent contractors are a business. Why would Amazon calculate someone else bottom line??? You are assuming these people are too stupid to do basic math.
I set up an ad online the other day asking for someone to set up my furniture. Someone agreed to come to my place to do it. Am I expected to calculate his transportation//tools costs so he can see if it'll be worth it???
Last edited by Liar_Liar; 11-18-2018 at 10:08 PM..
Again.. Why on earth would Amazon calculate their potential profit???? How would they even do that?? Everyone's expense is different.
You said it yourself, independent contractors are a business. Why would Amazon calculate someone else bottom line??? You are assuming these people are too stupid to do basic math.
I set up an ad online the other day asking for someone to set up my furniture. Someone agreed to come to my place to do it. Am I expected to calculate his transportation//tools costs so he can see if it'll be worth it???
Because we are not supposed to think for ourselves or look out for ourselves. This is what you get when there is a plethora of nanny staters.
a W2 job has employer share SS and medicare taxes paid by the employer not shown on the employee's pay stub. That part is not included in the 'gross' number, and neither are the amount of taxes and fees paid on behalf of the employee that are not withheld (i.e. head tax). Oh, and employee business costs are not counted in the "gross figure" (i.e. value of your desk, phone, computer, etc.)
In addition, independent contractorships are not jobs.
Can't compare the two.
Your gross revenue is still what you earned. What you described are expenses related to a job. An independent contractor calculates those expenses on their own. That's actually a pretty important part of being classified as a contractor and not an employee.
A contractor is doing work in exchange for a paycheck. That's a job. You and I both know it. Come on.
It’s actually not that difficult to add up what the costs are going to be. I don’t think most people ignore the cost I don’t think most people are that stupid. I don’t think the costs are even that high considering you could deduct $.56 a mile from your taxes. As an independent contractor you can deduct all kinds of things. Normally healthcare expenses have to exceed 9% of your income in order to deduct them. When I was a contractor however it only had to be 2% and then I was able to deduct my health care premiums. I have a feeling none of that was considered for arriving at the net income.
It’s not Amazon’s responsibility to teach people how to have good business or financial sense. There’s no one’s fault but their own if they don’t look into the pros and cons of any business. Before I decided to become a 1099, I did extensive research.
That is one of the misconceptions that drives people to take these contracts.
In no way, shape, or form can you deduct 56¢ per mile from your taxes!
What you CAN do is deduct 56¢ per mile (with proper documentation) of your business related travel from your GROSS INCOME as a normal business expense.
To someone who would actually take such a contract, which is NOT a job, most of who would be in the 15% to 20% tax bracket, the effect on taxes would be less than 12¢ per mile. Far below your actual cost of the use of your vehicle including fuel, maintenance, and depreciation, for most people.
Your gross revenue is still what you earned. What you described are expenses related to a job. An independent contractor calculates those expenses on their own. That's actually a pretty important part of being classified as a contractor and not an employee.
A contractor is doing work in exchange for a paycheck. That's a job. You and I both know it. Come on.
Still incorrect.
A job pays you for your labor over time. That is your pay. Your employer pays the business expenses in addition to what they pay you.
A contract pays you a flat price regardless of your expenses. Once you deduct ALL of your business expenses from the contract price, THAT is your pay. The company contracting the work out has offloaded a portion of their business expenses to you, and transferred that cost and liability to you in your contract.
Surely you can see the difference...
A professional independent contractor is expected to be able to calculate their actual expenses in bidding out a contract. The average person looking to earn some money driving deliveries with their own vehicle at a rate set by others is not going to be so savvy.
They'll find out the hard way, especially when Amazon doesn't disclose that they need special insurance for their independent contractorship.
Again, Dominoes did not discuss my insurance needs either. Nor did the hospital system who I worked for when I did home health as a 1099 go over my insurance with me. Since when do employers do all this? Are people that stupid nowadays that they need their hand held through every aspect of working?
I see this attitude all over the forums. Over in colleges, people complain that their classes didn’t transfer to a four-year university from community college. Did you find out if they would before you took them? No, the school was supposed to TELL them that, they weren’t supposed to have to research anything.
No different here. It takes a one minute phone call to call my insurance agent and ask “Am I covered if I do this?” I didn’t know anything about taxes and what I could deduct as a 1099, so I bought a couple of books on Amazon, and hired an accountant to do my taxes and figure my quarterly payments. It really is not that difficult.
A job pays you for your labor over time. That is your pay. Your employer pays the business expenses in addition to what they pay you.
A contract pays you a flat price regardless of your expenses. Once you deduct ALL of your business expenses from the contract price, THAT is your pay. The company contracting the work out has offloaded a portion of their business expenses to you, and transferred that cost and liability to you in your contract.
Surely you can see the difference...
A professional independent contractor is expected to be able to calculate their actual expenses in bidding out a contract. The average person looking to earn some money driving deliveries with their own vehicle at a rate set by others is not going to be so savvy.
You don’t have to be savvy to Google something, buy a book or ask professionals. I’m sorry, but if people need their hands held this much perhaps they should just flip burgers.
My guess is that they are not fully factoring in auto depreciation. Also, what if gas goes back up to $3+/gallon?
What happens if you deliver pizza and gas goes up? What happens if you deliver for GrubHub or drive for Uber and gas goes up? What if you take a job with a 50 mile commute, and gas goes up?
People are acting like it’s a bad thing that these jobs are even being created simply because there are downsides and people don’t want to take the time to figure out the pros and cons, and somehow that translates to Amazon being evil and fooling them all.
Not everyone uses their own cars to flex driver either. Many smart people have been renting U-Haul‘s and delivering many many packages in a day and still making a lot of profit even with the U-Haul truck cost.
I’m not even saying it’s a good job, but I really object to the notion that Amazon should sit down with every potential contractor and discuss all the pros and cons to make sure that they’re going to be happy and make a profit, that’s ridiculous. Adults need to be able to do that for themselves.
A professional independent contractor is expected to be able to calculate their actual expenses in bidding out a contract
That's the point I've been trying to make since page 1 of this thread.
Quote:
Originally Posted by rugrats2001
The average person looking to earn some money driving deliveries with their own vehicle at a rate set by others is not going to be so savvy.
Jesus freaking Christ, dude... Why do you think so little of these people??
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