1099 contractor. Things to keep in mind? - Chicagoland Sportbikes
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post #1 of 16 (permalink) Old 04-16-2008, 02:06 PM Thread Starter
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1099 contractor. Things to keep in mind?

Well, I have the opportunity to take on a great contract that I can do on the side. Lead project management and implementation of a complete network rebuild for a pharmaceutical company.

I'll be brought on as a 1099 so I was wondering if anyone had some insight with what to expect, things to keep in mind, and other general info about being a freelance contractor.

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post #2 of 16 (permalink) Old 04-16-2008, 02:29 PM
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Keep ALL your receipts that could be even close to work related. Clothing, gas, tools, etc. Better to have too much for your tax person to go through than too little.

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post #3 of 16 (permalink) Old 04-16-2008, 02:31 PM
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+1, keep all receipts. I keep an envelope in the car and fill it with gas receipts, parking receipts, restaurants, etc.

then, once a month, i move it from the car into the expenses box for tracking.
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post #4 of 16 (permalink) Old 04-16-2008, 03:35 PM
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Yes, taxes are a PITA. I recommened using an accountant to help you (1) not screw yourself, and (2) take advantage of the tax breaks for buying your own stuff related to your work.

PM me, I'm consulting at a large Pharma firm right now, I wonder if it's the same one.

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post #5 of 16 (permalink) Old 04-16-2008, 04:07 PM
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Make sure you do the quarterly estimated taxes. As a 1099 person, you have to file taxes on a quarterly basis. It sucks balls because you have to save money from each check to use for taxes.

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post #6 of 16 (permalink) Old 04-16-2008, 04:43 PM
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Don't forget to set money aside for self employment tax as well. Are you getting insurance? I would suggest a 2 million policy with the company as the holder. It was only 250 a year for me and well worth it for the peace of mind. Example. If you trip on a server and it goes down they can sue you for lost productivity. It was called something like Commercial General Liability Insurance. Keep receipts for cell phone, Internet, and anything you use. Also might want to look into seeing a CPA beforehand to make sure you thought of everything you will need to keep track of.
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post #7 of 16 (permalink) Old 04-16-2008, 04:46 PM
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Don't even get me started on 1099's
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post #8 of 16 (permalink) Old 04-16-2008, 05:07 PM Thread Starter
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Don't even get me started on 1099's
Haha lets hear it. I want the down and dirty before I get in too deep. The money is real good. Looking at 105/hour right now and i'll be sure to bring up insurance in the negotiations.

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post #9 of 16 (permalink) Old 04-16-2008, 05:14 PM
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Save a bunch of it for taxes. You have to pay your own Social Security, Federal, and State taxes. Also don't forget to file taxes each quarter, like ChicagoRR said.

$105/hour? Damn, that is really good.

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post #10 of 16 (permalink) Old 04-16-2008, 05:30 PM
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i thoughtt this was going to be about some new ducati lol

sometimes you need to run before you can walk

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post #11 of 16 (permalink) Old 04-16-2008, 05:32 PM
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Yes save a bunch for taxes. I own the man 3 grand.
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post #12 of 16 (permalink) Old 04-16-2008, 06:18 PM
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Yes save a bunch for taxes. I own the man 3 grand.
3k...don't get ME FUCKING started....

I didn't save for the first quarter then had to pay 6 months worth the second quarter PLUS a fine....a nice fat fist up the ass fine....doh!

Just save 35% of your pay in a separate bank account and don't touch it, get your own insurance and life insurance and be done with it. Blue Cross Blue Shield works well for me.

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post #13 of 16 (permalink) Old 04-16-2008, 06:23 PM
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Well this was not for my normal job. It was side jobs.
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post #14 of 16 (permalink) Old 04-16-2008, 06:27 PM Thread Starter
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Quote:
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Well this was not for my normal job. It was side jobs.
Yeah this will be the same for me. This is just a side project for me.

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post #15 of 16 (permalink) Old 04-16-2008, 06:27 PM
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Quote:
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Well this was not for my normal job. It was side jobs.
Ohhhhh

I did it for a full time gig, won't do it again. I don't have the disipline nor maturity for it.

A side gig is a different story.

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post #16 of 16 (permalink) Old 04-16-2008, 08:53 PM
 
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As a 1099, remember that their is no company paying your taxes (federal, state, local, and FICA). As for FICA (self-employment tax) you will be responsible for the full amount. As everyone has mentioned, taxes are due quarterly and if you don't pay you can be fined.
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