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  1. #1
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    twistedredbird's Avatar
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    from salary to independent contractor

    I will be starting a work from home position soon that is contract pay vs. salary and will get a 1099 at end of the year. So, anyone have advice on how to deal with taxes, fica etc. when moving from a salary position to a contract pay position that does no withholding? It is also a work from home position, so I believe I will have be able to have some business related tax deductions. Advice welcome.



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    Re: from salary to independent contractor

    Get a GREAT accountant (they'll be your best friend!) and remember, you get to pay double the FICA tax - and that really sucks!

    Congrats on the new gig and best of luck!



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    Re: from salary to independent contractor

    Quote Originally Posted by twistedredbird View Post
    I will be starting a work from home position soon that is contract pay vs. salary and will get a 1099 at end of the year. So, anyone have advice on how to deal with taxes, fica etc. when moving from a salary position to a contract pay position that does no withholding? It is also a work from home position, so I believe I will have be able to have some business related tax deductions. Advice welcome.
    A accountant will be very helpful, and a good one.. Mine recommended to set up a corporation i believe S corp and then still pay myself salary...what ever your comfortable with. That way you are still paying in some of your taxes etc. Then you can 1099 the rest, and get to use your rightoffs, Home office, miles etc.

    im sure a accountant will be able to explain it better but i have had 2 dif accountants and both recommened to go this way....

    good luck



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    Re: from salary to independent contractor

    Don't wait until tax time to see your CPA -- do it now! You'll need their expertise so you are sure you are tracking all the business deductions you can. They can also help you estimate your quarterly prepayment of taxes you'll most likely want to do (so you don't get penalized at tax time for underpayment).


    CCG

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