Self employment?

300UGUY · Aug 22, 2013

Tractor Seabee said:
If your compensation as a contractor is not equal to what your client's total book cost of the same job done by an employee on their payroll then you are being robbed. This is a standard ploy by unscrupulous employers to get the work done at lower cost and they have recourse for mistakes, standby, you goof and they will refuse to pay as the work is not as contracted. As Carl stated above, the IRS in cahoots with the Dept of labor to crack down on workers being contractors when in reality they take orders directly from the clients supervisors. The test is; are you given a block of work, a deliverable product, and you choose how you do it and get paid for the final product. As an example piece work (contract) in construction has been virtually eliminated from commercial construction. I have a consulting business and my bill out cost is right at what it would cost the client to have a similar person on their payroll. My stock in trade is I am the go to company to provide the service when a client has excess work but not enough to hire a full time employee. Then, I am semi-retired and do not want to work full time. But I refuse to undercut the market for full time employees coming up the ladder.

Ron

You are a good man. And smart, a lot of guys are getting screwed and don't even know it. And for most folks, SS is a good deal. Few folks will actually invest much, and fewer would invest well.

grsthegreat · Aug 22, 2013

300UGUY said:
You are a good man. And smart, a lot of guys are getting screwed and don't even know it. And for most folks, SS is a good deal. Few folks will actually invest much, and fewer would invest well.

errrr.. no it isnt.

My SS ..if its even around when i retire... wont net me much at all. It was never ment to LIVE on. it was supposed to just help with retirement.

The wife and I have been investing for 20 years. I have more than enough to live on when we retire, and we've just added 2 rental houses to the lot. No one said the govt owes you a living. Ive been self employeed for close to 30 years. Had a few paying jobs out of college, but found better pay and easier working conditions in self employment.

though my boss is a jerk (HA).

Just watch the IRS. If your only working for 1 person , and that 1 person contributes 100% of your pay...your nor self employeed. The IRS can come after you. just a heads up

Tollster · Aug 22, 2013

I have been a sub contractor for more than 27 years, no benefits, no retirement, only ROTH. Things have been slow in the Nuclear industry and now I have gained many certifications in various disciplines of NDE and QC/QA. Each has always been negotiated on an hourly rate.
I was presented an opportunity to perform oversight and consulting, but using a 1099 form at more than twice my sub contract rate (yes I have had to file quarterly too). The work is not out of the area within 150 miles one way, and would require me once a week. I know its slow, but it may present me with better opportunities than I have had working for someone else.
This subject has nothing to do with any current employer, nor substandard pay. It was about the tax issues. After 27 years traveling to 36 different nuclear plants and various refinery's and fossil facilities, I have always maintain a high level of integrity and professionalism. I am just looking for a change in an industry that has done more with less, with little care about a sub contractor.
This opportunity is not in the nuclear field at this time, however it is involved with energy.
Thank you for all the replies,
~Tol

AlanB · Aug 31, 2013

If you decide to go this way, insure that you have a good CPA doing your taxes. I would say in the ballpark numbers, figure on 1/3 to 1/2 of your pay going to various things I would call a tax.