[AccessD] Sorry for joking around

What I meant is that if you, claiming yourself to be an independent
contractor, can be re-classified by the IRS as a direct (W2) employee if you
meet certain criteria.  

Obviously if you get all your money from one 'customer', work at their site,
use their equipment, and always take specific instruction from a manager,
then you are in effect a direct employee.  When I started working for
myself, the IRS had a 20 question rule.  The more questions you answered yes
to the more likely that you were actually a direct employee.  I don't think
they use the 20 question rule anymore, but the concept still applies.

If they consider you to be, in effect, a direct employee then the IRS can
unilaterally change both the taxes you owe and the taxes your customer owes,
which would probably be more.  

This really is something to keep in mind if a customer wants you to work at
their site for a long time.

Here is the IRS page on this: 
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html


Dan

-----Original Message-----
From: accessd-bounces at databaseadvisors.com
[mailto:accessd-bounces at databaseadvisors.com] On Behalf Of Susan Harkins
Sent: Tuesday, April 29, 2008 5:56 PM
To: Access Developers discussion and problem solving
Subject: Re: [AccessD] Sorry for joking around

- and if you're
> doing that then the IRS will consider you to be an actual employee.

====What do you mean by that? The amount billed or the hours worked is 
irrelevant to the IRS.

Susan H. 

-- 
AccessD mailing list
AccessD at databaseadvisors.com
http://databaseadvisors.com/mailman/listinfo/accessd
Website: http://www.databaseadvisors.com