As both a small business owner, and an independent contractor I fully understand the benefits, and responsibility of working for yourself. Yes, it provides countless benefits of flexibility, and the opportunity for setting your own limits both with your schedule, and your bottom line. To sum it up working for yourself means only you define your success in business. This can be a double edge sword but for many of us it is a factor we are willing to deal into our hand when we sit down at the card game of owning your own business.
However there are some out there today that think that they want just the benefits and none of the responsibility of working for yourself. These would be Independent contractors are popping up every where. I am not talking about those of us that have taken on a 1099 contract, and have an agreement with our clients to preform a service for them in exchange for a set rate. We legit contractors are out to take advantage of the many opportunities for contract employment that offer the flexibility to the employer to have a facet of business preformed with out all the strings of a conventional employee. While this works great for us to be more flexible, and work when and how much or little we want. It’s not without its faults. There is no security for the most part, it can be inconstant at best, and of course there is the matter that you have to keep track of and pay your own taxes.
The thing that sets us legit contractors, and the phonies apart is that last American duty part..Taxes! There is a growing trend of people who are getting federal or unemployment benefits in one hand and wanting contract jobs in the other. So they have one hand on the table and one under it , and it is wrong!
Being a 1099 contractor is not a way to skirt the piper on tax day. I understand that unemployment is not enough and jobs are scarce but this is not the answer and it is unfair to the employers you are asking to do it.
As a business owner I cannot imagine why you would knowingly take on the liability of paying someone under the table??? You realize that it is no skin off your back to fill out a 1099, and file at the end of the year? You still get the same deduction but you are fallowing the letter of the law. Also if you get caught for your miss handling YOU get the fines and penalties, and you are forced to report what you should have in the first place.The good deed you thought you were doing for your brothers wife’s out of work cousin will come back to haunt him even more if he didn’t report his income. I wont even go into the $$$ you could have to spend when your liability and workman’s comp insurance audits come about. If you are in an industry that regulates licensed and insured subs and you have Mr. Freeloader on the books you are gonna pay out the nose for years to come.
As a contractor I cannot imagine asking a fellow business owner to do such a thing. If you are on unemployment or some sort of government assistance you better go thank a small business owner because they are gonna have to pony up more money each month for unemployment tax so you can stay on unemployment fr another six months to a year. Not to mention they are employing the people that are paying the taxes along with them to give you all those perks of being an American in the system. So think about that next time you try to take the money and run.
Not to go all Sarah Palin on you, but there are several things the former Governor of Alaska and I agree on. One of them being that there are some things that you must do just because they are right and American! Do you think for one second that your forefathers would think this is ok? Really People these government programs were instituted to help not enable some while hindering others. If you enjoy the programs that feed your family and rent your home then for God sakes you better get your hands dirty pitching in to the pot.
Ok, I know the system is broken and that is a whole nother post, but there are some basics here at play that some people are missing! The great post depression programs only work, and set our country apart if people don’t get greedy and do their part. Not take and never give back.So if you are going to work as a 1099 contractor be prepared to also assume to responsibility of paying up at the end of the year. If you have to set a % aside to do so each check or payment then do it. Start a savings account or a fund just for that. With any luck you will have enough write offs to combat the income but you have to keep good records and don’t fluff that either! The extra money might be inticeing ,and you may even need it every month..I get it! But you better report it now than getting caught later and paying even more.
The bottom line is, it’s just a practice that gets my goat. It’s wrong! Is this really how we want to define being an American? The land of opportunity with out accountability? I think not! There are plenty of opportunities to get ahead with out being dishonest. Whether you agree with all the politics at play today or not I bet you would agree that you don’t want to be known as the land of the free loaders instead of the free!
Work hard and pay your taxes! If you don’t like how they spend your tax money then vote and pray! Remember you have the right to do both! There are men & women that are dying to protect your right to do both and guess where their salaries come from?
Still think 1099 skirting is the answer?0