Sunday, May 20, 2007

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

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