Hiring a Contractor vs Hiring an Employee

Evil HR Lady

When deciding whether to hire someone directly or to offer someone contractor employment, there is more to consider than you might realize. You may think that it’s simply your decision—do you want this person to be a regular “W-2” employee or do you want this person to be a “1099contractor? The IRS strongly regulates whether someone is a contractor or an employee. Control Freaks Shouldn’t Hire Contractors.

“Are non-compete agreements binding on independent contractors?”

Sklover Working Wisdom

Question : I worked as a 1099 independent contractor, and not as an employee. I left there and I am now working for a different company, also as an independent contractor (not an employee.). A non-compete agreement (sometimes called a “non-competition” agreement) between a company and an independent contractor is presumptively binding and enforceable. I was paid no salary, but only commissions. While I did that, I also signed a non-compete agreement.

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contractor wants a raise 2 months after starting, fired for no reason, and more

Ask a Manager

Contractor wants a raise two months after starting. Two months ago we brought on a new editor on a 1099 contract basis. She knows it would be hard for us to onboard a different contractor until that’s over. It’s five answers to five questions. Here we go….

2020 41

what to do when your employer illegally treats you as a contractor

Ask A Manager

A reader writes: My question relates to being a 1099 contractor for a consulting firm. I was under the impression that I would be working with the rights and privileges of an independent contractor. As an independent contractor, can they require this of me? In looking at the IRS website, I was under the impression if they control when/where/how I work, I am no longer a contractor but an employee.

employee clique is causing problems, employer will pay me more if I work as a contractor, and more

Ask a Manager

Employer will pay me more if I work as a contractor. I asked him to expand upon this, and he said that if I wanted to waive all benefits, including leave, and become a 1099 contractor, they could meet $65k. They can’t just decide to make you a 1099 contractor without restructuring the job; there are legal restrictions on how contractors must be treated. It’s five answers to five questions. Here we go…. An employee clique is causing problems.

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13 Things to Hold Onto For Next Year’s Taxes

Ms. Career Girl

1099 Tax Forms. 1099 tax forms are available for various reasons. Freelancers and self-employed contractors may file a 1099 to report earnings for the year. Just like with W-2s, you should file 1099 forms with your tax returns. The post 13 Things to Hold Onto For Next Year’s Taxes appeared first on Ms. Career Girl. Are you breathing a sigh of relief now that tax season is officially over?

2017 102

10 Surprising Statistics About the Contingent Worker and Your Contract Workforce

Workology

My work has placed me at an interesting intersection where I am working and consulting in the HR and recruiting industries while also being an independant contractor and member of the contingent workforce. The independent workforce is called a lot of different things: freelancer, contract worker, project based workforce, 1099 employee, contingent worker, on-demand workforce and even the extended workforce.

How to Identify an Employment Scam

Resume Bear

Rather,you become an independent contractor who receives a 1099 instead of a W-2 tax form at the end of the year. Are you currently on a search for a new job? If you are, you may be using the internet, as well as your local newspapers, to find job openings. While these are both great way to find job openings that you are qualified for, as well as to apply for them, you need to remember to be on the lookout for employment scams.

2011 197

Work as a Virtual Assistant : Insider Tips

Ms. Career Girl

Most virtual assistants are 1099 contractors, which means the compensation can vary depending on your employment agreement—whether you’re truly on your own as a freelancer, working through a placement organization like eaHELP or hired on directly through the organization. The post Work as a Virtual Assistant : Insider Tips appeared first on Ms. Career Girl. In today's very competitive employment environment, you need to keep all your options open.

2016 104

Top Five Workplace Blogs of the Week

Workology

The Danger of Using 1099 Independent Contractors to Avoid Obamacare. We’re back! This week was a doozy! Facebook announces one of the biggest swings against search giant Google? The Social Search!?! Just wow. Facebook’s introduction of the Social Search puts it in the running to become one of the best integrated search functions all from the comfort of your hompage. Haven’t gotten the Social Search yet? To bad. It’ll be coming to you in the coming weeks.

2013 100

“Must an employee be paid to sign a non-compete?”

Sklover Working Wisdom

I worked for a company as a 1099 independent contractor for several years. Question: Is it true that a non-compete agreement can only be enforced when the employee signing it is compensated for giving up their rights? Then I was brought on as a W-2 employee, and the compensation remained the same. When I became a W-2 employee, I was required to sign a new and detailed non-compete agreement, but not compensated extra for signing it. Is it enforceable? Bernard. New York, New York.

my boss makes me wear her clothes, eat her food, and say I’m grateful for my job

Ask a Manager

When I received my tax documents, I got a 1099 instead of a W-2. As for her treating you as a 1099 contractor rather than an employee (and thus not paying your payroll taxes ), that’s illegal. If she’s been paying you as a contractor this whole time, you should have seen it on your pay stubs when no taxes were coming out.). The way to address it is to be incredibly matter-of-fact: “I got my tax documents and it looks like I’ve been paid as a 1099 contractor.

2019 43

Share Your Passion – Be an About.com Guide

Telecommuting Journal

About.com hires independent contractors to contribute content to the About.com website as either a Guide, a Topic Guide, or a Video Producer. An independent contractor, or freelancer, isn’t employed by the company directly so for tax purposes you’ll be getting a 1099, not a W-2. If you’re looking for legitimate work at home jobs you might keep running across writing gigs that note “$675/mo base” as the compensation.

2011 100

Going Solo—Five Tips for Beginning Freelancers

Resume Bear

Whether you’re a business consultant, a contractor, a writer, or a photographer, deciding to branch out on your own is a big step. As a 1099 employee, you can expect a big tax hit at the end of the year, so force yourself to set aside at least 25 percent of your monthly income for Uncle Sam. So, you’re going freelance?

Seven Short Q & A’s on Saturday

Sklover Working Wisdom

Question 1: What can an independent contractor in North Carolina do to collect commissions he is owed? I worked as a 1099 independent contractor for a company that was bought out. Doug, an independent contractor in North Carolina, as in almost all states, is considered an independent business-person. I am owed money by the purchasing company. They won’t pay me unless I sign a non-compete agreement to protect them. What can I do? Charlotte, North Carolina.

2011 109

updates: the invasive client, the missing chocolate egg, and more

Ask a Manager

She agreed to be a 1099 worker and started working with the nonprofit quickly after that as a trainer for those people undertaking the IT training that she had already completed. The boss was a government person, but the sprayer and I were both contractors, though from different companies.

2020 38

becoming a receptionist against my will, baking for one employee but not the other, and more

Ask a Manager

If you switch from contractor to employee, should your pay go down? He currently works as 1099 employee for a company and makes $110,000/year. It’s actually really common for people to charge more when they’re independent contractors. It’s five answers to five questions.

2020 31

Moving Out

Evil HR Lady

Most newspaper delivery jobs are done by independent contractors. (Or If she was an independent contractor, she would have been provided with (most likely) a 1099 for the same purposes. I have a friend, a really good friend whose father got remarried and they moved to the stepmother's house. My friend, recently turned 18 or 19 at the time, was told to expect to pay room and board. A set price was never agreed on, or truly determined.

2010 100

Moving Out

Evil HR Lady

Most newspaper delivery jobs are done by independent contractors. (Or If she was an independent contractor, she would have been provided with (most likely) a 1099 for the same purposes. I have a friend, a really good friend whose father got remarried and they moved to the stepmother's house. My friend, recently turned 18 or 19 at the time, was told to expect to pay room and board. A set price was never agreed on, or truly determined.

2010 100

Leapforce Agents - Search Engine Evaluators

Telecommuting Journal

You’ll be an Independent contractor, not an employee, so you’ll be responsible for claiming earned income (anything over $600 for the year) based on the 1099 they’ll send come tax time. As a contractor, the terms are 30 days, which means they have 30 days to pay you for work already completed. It doesn’t seem fair to wait so long for hours and hours of work, but it is a legitimate way that many companies do business with contractors these days.

Leapforce Agents – Search Engine Evaluators

Telecommuting Journal

You’ll be an Independent contractor, not an employee, so you’ll be responsible for claiming earned income (anything over $600 for the year) based on the 1099 they’ll send come tax time. As a contractor, the terms are 30 days, which means they have 30 days to pay you for work already completed. It doesn’t seem fair to wait so long for hours and hours of work, but it is a legitimate way that many companies do business with contractors these days.

think you want to work for yourself? here’s what you should consider.

Ask a Manager

There can be huge perks to being a full-time independent contractor: You set your own schedule. However, before joining the land of the 1099 employees (1099 = the tax form you’ll be getting instead of a W2), make sure you’ve thought through the following five changes that will be coming your way, so you don’t get caught off guard or under prepared. As an independent contractor, you’ll be responsible for paying both halves – as well as a self-employment tax!

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Got a Phone And a Plethora of Patience?

Telecommuting Journal

To learn more about the difference between an employee and a 1099 contractor, refer again to Be Careful, Is it Really Employment. Their careers section also notes why it’s better to be an employee (as opposed to an independent contractor). It appears that they have both employment opportunities and independent contractor opportunities. Working Solutions Created in 1996, their agents are independent contractors (not employees).

2008 100

Got a Phone And a Plethora of Patience?

Telecommuting Journal

To learn more about the difference between an employee and a 1099 contractor, refer again to Be Careful, Is it Really Employment. Their careers section also notes why it’s better to be an employee (as opposed to an independent contractor). It appears that they have both employment opportunities and independent contractor opportunities. Working Solutions Created in 1996, their agents are independent contractors (not employees).

2008 100

SR: 2 Pay Questions and an Unemployment Problem

Evil HR Lady

The company considered me to be an independent contractor, but after reading about the criteria of independent contractor vs. employee, I think I was an employee. During the hearing, I could request by way of subpoena that they provide my time sheets and other documentation to prove that I was an employee and not an independent contractor, but I have a strong suspicion (after seeing what they have done in the past) that they will destroy those documents.

2010 108

Uber Drivers Are Not Employees. What This Means for Other Gig Workers.

Evil HR Lady

The National Labor Relations Board (NLRB) just ruled that Uber drivers are, indeed, contractors and not employees. This ruling can impact your business if you use contractors or can affect you if you (like me) work in the so-called “gig economy.” ” Uber Drivers as Contractors is Unsurprising. The NLRB expanded their definition of contractors earlier this year as well. It can’t just be the decision of the employee/contractor and the company.

approaching a hiring manager in public, coworker keeps nagging me about diet soda, and more

Ask a Manager

I worked as a 1099 contractor for a few months, introduced to the position by a former coworker. Now taxes are due, and my accountant noticed that by IRS definition, it looks like the company had me on 1099 status to save them paperwork and taxes. Of course, do make sure first that your accountant is correct and that you really should have been paid as an employee rather than a contractor. It’s four answers to four questions. Here we go….

1099 29

fast answer Friday — 7 short answers to 7 short questions

Ask A Manager

Company is changing my status from employer to contractor. I am wondering if you can tell me if a company has the right to change an employees status from W2 to 1099 without a 30 day notice? However, they do need to ensure that you’re actually being treated as a contractor once they make that change — which is probably fairly different than you were treated as an employee. It’s fast answer Friday — seven short answers to seven short questions.

2013 58

update: my coworker won’t stop complaining about our health insurance and I feel horribly guilty

Ask a Manager

A few people wondered why my company offered any benefits since he was a contractor – we don’t, he was a contractor through his external company. He was not 1099, but he was a full-employee of the external contracting company. Remember the letter-writer whose coworker wouldn’t stop complaining about his health insurance and she felt guilty because she’d helped hire him? Here’s the update.

1099 20

should I leave my dream job, interview makeup mishaps, and more

Ask A Manager

What happens if my employer gets caught misclassifying me as an independent contractor? My boss has claimed me as an independent contractor for the last 9 years and I’ve been given 1099 tax forms for each of those years. My boss is trying everything he can to make me look like an independent contractor, and I had taken his word for it that indeed I was. Happy 4th of July! To celebrate, we have seven short answers to seven short questions. Here we go… 1.

2013 59

asking sick employees to stay home, I don’t want to do the intern hiring, and more

Ask a Manager

It is a freelance/contractor type position (1099) but the interns are required to be in the office during specified hours, use company-owned computers, do not set their own rates, etc. It’s five answers to five questions. Here we go…. Can I ask employees to stay home if they’re sick? I’m the head of a team of 15-20 part-time employees who are paid hourly and do not get benefits or paid leave.

1099 30

wee answer Wednesday — 7 short answers to 7 short questions

Ask A Manager

Being paid as a contractor when I’m treated as an employee. I recently came across the following information in one of your blog posts: “Your employer can’t pay you as a contractor while treating you like an employee. My employer takes advantage of me and my pay requirements, and although I work as an employee he gave me a 1099 for my salary this year. It’s wee answer Wednesday — seven short answers to seven short questions. Here we go… 1.

2013 57

I get embarrassingly emotional when criticized, boss is yelling at me for using my phone, and more

Ask a Manager

I am a contractor at a government agency. You should also loop in HR, if HR there deals with contractors. Depending on what type of contractor you are, the Americans with Disabilities Act might not be in play here. (If If you’re a 1099 independent contractor, it doesn’t cover you. If you’re a W2 contractor — employed by a contracting company, just not be the agency you’re working in, which I suspect is the case — you’re covered.)

2015 30

my whole team brings their spouses on business trips, turning in work too quickly, and more

Ask a Manager

Some years back, the IRS reclassified a slew of contractors at Microsoft as employees because the’d been there so long and were essentially being treated as employees — which meant that Microsoft had to pay millions of dollars to said contract workers and give them the same stock options as employees. You should be eligible, assuming that you weren’t a 1099 independent contractor — in other words, assuming your employer took payroll taxes out of your check. (If

2018 21

attending an employee’s wedding, interns and gift-giving, and more

Ask a Manager

I’m a 1099 contractor, and I was clear that I would work remotely (from home) and attend meetings as needed with advance notice. If he continues to push after this, you should hold firm in response, and at some point may need to say, “It sounds like you’re looking for more of an on-site employee than a contractor. It’s five answers to five questions. Here we go…. Attending an employee’s wedding.

1099 20

agreeing to negotiate salary in 6 months, badgering people into not taking sick leave, and more

Ask a Manager

Some gym employees are 1099 contractors; if that’s the case, then this wouldn’t apply, and the pay can be whatever they negotiate together. It’s five answers to five questions. Here we go…. Accepting a job with an agreement to negotiate salary after six months. I recently started a new job. When I was offered it, the pay was a bit lower than I was hoping for so I asked HR if I could discuss it with someone.

1099 20

3 things I learned by quitting my job in a recession

Ask A Manager

If you are contracting yourself out and working on a 1099, then you are required to make quarterly estimated tax payments. What I call the Small Business Bible is Publication 15, and Publication 334 will help with Schedule C or for folks you are just contracting themselves out for a 1099, read Publication 505. Reply Ask a Manager April 5, 2011 at 11:33 am My understanding is that Keogh plans can’t be used if you’re just working as an independent contractor.