SQL Clone
SQLServerCentral is supported by Redgate
 
Log in  ::  Register  ::  Not logged in
 
 
 


Contracting question - Left old company, but still provide support.


Contracting question - Left old company, but still provide support.

Author
Message
Sinh Dinh
Sinh Dinh
SSC Veteran
SSC Veteran (251 reputation)SSC Veteran (251 reputation)SSC Veteran (251 reputation)SSC Veteran (251 reputation)SSC Veteran (251 reputation)SSC Veteran (251 reputation)SSC Veteran (251 reputation)SSC Veteran (251 reputation)

Group: General Forum Members
Points: 251 Visits: 566
I never did contracting before, but I'll be on a 1099 with my previous employer. How would I invoice them my work and how does that affect my taxes? Do I need to had a tax id? I'm not sure where to start.

Any advice would be great.

Thanks
DJS-202175
DJS-202175
Forum Newbie
Forum Newbie (5 reputation)Forum Newbie (5 reputation)Forum Newbie (5 reputation)Forum Newbie (5 reputation)Forum Newbie (5 reputation)Forum Newbie (5 reputation)Forum Newbie (5 reputation)Forum Newbie (5 reputation)

Group: General Forum Members
Points: 5 Visits: 20
I'm doing the same thing. My ex employer will 1099 me, and I will be expected to pay my taxes based on my total years salary. I invoice them using a simple template provided by Microsoft.

HTH,
DJS
Michael Valentine Jones
Michael Valentine Jones
SSCoach
SSCoach (18K reputation)SSCoach (18K reputation)SSCoach (18K reputation)SSCoach (18K reputation)SSCoach (18K reputation)SSCoach (18K reputation)SSCoach (18K reputation)SSCoach (18K reputation)

Group: General Forum Members
Points: 18645 Visits: 11872
You should really contact an accountant about this.

If you don't set it up right, tax penalties can be quite severe.
Jeff Moden
Jeff Moden
SSC Guru
SSC Guru (268K reputation)SSC Guru (268K reputation)SSC Guru (268K reputation)SSC Guru (268K reputation)SSC Guru (268K reputation)SSC Guru (268K reputation)SSC Guru (268K reputation)SSC Guru (268K reputation)

Group: General Forum Members
Points: 268011 Visits: 42190
Michael is quite correct... if the 1099's end up becoming your main income or they exceed certain amounts, you MUST pay estimated quarterly taxes... do consult a good accountant! If you don't, you may have to employ a good lawyer Wink

--Jeff Moden

RBAR is pronounced ree-bar and is a Modenism for Row-By-Agonizing-Row.
First step towards the paradigm shift of writing Set Based code:
Stop thinking about what you want to do to a row... think, instead, of what you want to do to a column.
If you think its expensive to hire a professional to do the job, wait until you hire an amateur. -- Red Adair

Helpful Links:
How to post code problems
How to post performance problems
Forum FAQs
Steve Jones
Steve Jones
SSC Guru
SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)

Group: Administrators
Points: 179484 Visits: 19497
Get a CPA, and you can deduct their fees on taxes.

make sure you keep track of all expenses in writing. And plan on filing quarterly taxes. Guess what you would owe for the year and fill out the quarterly form, send it in. That's what I do, has worked well and the CPA has blessed it.

Plus you're not looking for a large amount of $$ in april to pay what you owe. Pay as you go along.

Follow me on Twitter: @way0utwest
Forum Etiquette: How to post data/code on a forum to get the best help
My Blog: www.voiceofthedba.com
Matt Miller (4)
Matt Miller (4)
SSC-Dedicated
SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)

Group: General Forum Members
Points: 36768 Visits: 19115
Here here on getting the accountant to help you set up the taxes.

that being said - if you're going on a 1099 basis, using your previous salary as a benchmark - you're shorting yourself some money. There should be a definite "bump" between what you were getting paid to be there 40 hours, and what you are now for giving up your spare time, etc.... Taxes, soft time, time off, benefits, insurance, licensing of your software - that stuff isn't free, so you better be getting compensated for having to maintain all of those things.

You're a contractor now - it will be healthy for both you and your client to starting thinking in those terms, so don't short-sheet yourself. Really - things ARE different now, so the switch needs to be obvious to all.

I'm doing that now - and I charge the client something in the range of 140% of what it used to be under salary.

----------------------------------------------------------------------------------
Your lack of planning does not constitute an emergency on my part...unless you're my manager...or a director and above...or a really loud-spoken end-user..All right - what was my emergency again?
Brandie Tarvin
Brandie Tarvin
SSC-Forever
SSC-Forever (48K reputation)SSC-Forever (48K reputation)SSC-Forever (48K reputation)SSC-Forever (48K reputation)SSC-Forever (48K reputation)SSC-Forever (48K reputation)SSC-Forever (48K reputation)SSC-Forever (48K reputation)

Group: General Forum Members
Points: 48277 Visits: 9362
You also need to discuss with your contractee how often you plan to invoice them and how long they have to pay you. This is VERY IMPORTANT. If you don't discuss it with them, you might get into a dispute with them about what is owed and when.

Also, it might not hurt to consult a lawyer anyway about possibly incorporating yourself. Find out whether it's better to 1099 for yourself or for a company that is you. There are tax benefits & downsides to both.

Brandie Tarvin, MCITP Database AdministratorLiveJournal Blog: http://brandietarvin.livejournal.com/On LinkedIn!, Google+, and Twitter.Freelance Writer: ShadowrunLatchkeys: Nevermore, Latchkeys: The Bootleg War, and Latchkeys: Roscoes in the Night are now available on Nook and Kindle.
Dave-3000
Dave-3000
SSCommitted
SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)SSCommitted (1.8K reputation)

Group: General Forum Members
Points: 1754 Visits: 571
Don't ignore the insurance aspects, either. You're not covered under the employers workers comp policy anymore, so if you fall down their stairs, they aren't obligated to pay your rate or medical bills. And, they can fire you on the spot as you lay bleeding in their stairwell.

There is no "i" in team, but idiot has two.
Steve Jones
Steve Jones
SSC Guru
SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)SSC Guru (179K reputation)

Group: Administrators
Points: 179484 Visits: 19497
Good point on the insurance. Be sure that you carry some. It's not that expensive, but it's required by some companies that hire you and it's a good idea in case something bad happens.

Follow me on Twitter: @way0utwest
Forum Etiquette: How to post data/code on a forum to get the best help
My Blog: www.voiceofthedba.com
Matt Miller (4)
Matt Miller (4)
SSC-Dedicated
SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)SSC-Dedicated (36K reputation)

Group: General Forum Members
Points: 36768 Visits: 19115
We'll have to define "not expensive", because E & O insurance for a developer or DBA isn't cheap, especially when you're touching someone's production systems (even if not directly). Mine's run me upwards of an MSDN universal subscription per year (depending on the projects I've had to run).

I don't always maintain a lot of it, but I do try for a minimum. I've seen folks wiped out for a LONG period of time for something stupid done to another corporation's IP (what we tech-heads call "data").

Or - I'm going to need to talk to Steve's insurance man...Smile

----------------------------------------------------------------------------------
Your lack of planning does not constitute an emergency on my part...unless you're my manager...or a director and above...or a really loud-spoken end-user..All right - what was my emergency again?
Go


Permissions

You can't post new topics.
You can't post topic replies.
You can't post new polls.
You can't post replies to polls.
You can't edit your own topics.
You can't delete your own topics.
You can't edit other topics.
You can't delete other topics.
You can't edit your own posts.
You can't edit other posts.
You can't delete your own posts.
You can't delete other posts.
You can't post events.
You can't edit your own events.
You can't edit other events.
You can't delete your own events.
You can't delete other events.
You can't send private messages.
You can't send emails.
You can read topics.
You can't vote in polls.
You can't upload attachments.
You can download attachments.
You can't post HTML code.
You can't edit HTML code.
You can't post IFCode.
You can't post JavaScript.
You can post emoticons.
You can't post or upload images.

Select a forum

































































































































































SQLServerCentral


Search