Self-employed or Employee: It's more than a name

June --

My boss decided to put me on a 1099. Just wondering what percentages I can expect to be taken based on a 15 dollar per hour wage at 40 hours per week, no write offs.

Thank you so much for your time.

Thanks, Eric


Eric, stop the train!!!

The difference between self-employed and employee is not just a matter of changing what you're called. Your boss cannot just "put " you as an independent contractor. If he's done this without any consultation with you, then most likely he's doing it to try to save money -- on insurance, benefits, workers compensation and payroll taxes.

Take a look at this column on my site: It's all about relationships: Are you an employee or are you self-employed?

If you are self-employed you should plan that about 30% of your income will go to taxes. For an explanation, check this out on my site Taxes: Which ones and how much do I pay?

-- June

To learn more about indie taxes and Self-employed Tax Solutions please visit http://www.junewalkeronline.com