Self-employed? Determined by facts, not choice.

June --

I am a software engineering consultant working as a W-2 hourly employee of a consulting company. I am on assignment at an insurance company. I report my hours to the consulting company, they bill the client, and give me a paycheck. I make currently make $54/hour. I receive medical benefits and 401(k) benefits (up to 3% match).

I am wondering if I can switch to a 1099, with the consulting firm contracting the work out to me as a subcontractor? I would bill the consulting firm, and they would bill the client. Is this allowed since I am already on assignment at the client. The billing relationships would change, but I would be doing the same work.

Dee
Alpha, Ohio



Hello Dee,


Whether you are self-employed or an employee is determined by the circumstances of your work relationship. It is not a matter of choice or changing the billing method.


You are an employee. Take a look at my post Employee vs. Self-employed .


-- June