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No Comments » Written on September 27th, 2011 by
Categories: BenefitsForConsultants

 

Everyone has heard about how the IRS is cracking down on the qualification of ICs. When is it correct to use a 1099 vs a W2? If you have ever asked yourself this question you can go to http://www.comptroller.ilstu.edu/downloads/20-factor-test-for-independent-contractors.pdf.   This is a 20 factor test that helps you determine if being an IC is right for you. If you are filing your taxes incorrectly there are 3 options you can take to correct this:

  • Ask your employer to allow you to work appropriately as an independent contractor.
  • Ask your employer to hire you as a W2 employee so that you are working legally.
  • Hire an employer-of-record so that you are technically a W2 employee, but still allow you to be your own boss.

Written by Amanda Freeman, a Consultant’s Financial Planner

 

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