The Small Business Tax Help Blog

Posts Tagged ‘contracting’

Quality service, tax savings and free sports shirts

Question: Am I responsible for tax witholding for a hired independent contractor in new jersey?

I have a new business and will be hiring an independant contractor. I have a agreement ready and he is infact an independant contractor, not a W2 employee. Normally you don’t withold taxes for independant contractors, but someone said that for new jersey you have to? Does anyone know what the new jersey specific rule is or where I can find it?
For all of you worried about misclassifying, I have looked into it, he works his own hours at his own location, gets paid on a per job basis, and offers the same service to the public.

Answer: Get a W-9 from him with his social security number otherwise you have to make backup withholding on what is paid.

The fact that you have an ‘agreement ready’ doesn’t make the worker an independent contractor. If you have the right to control how the job is done the worker may be an employee. If you misclassify a worker, you can be held liable for taxes you should have withheld and you would also be responsible for medical bills if he gets hurt on the job. Review IRS Form SS-8 http://www.irs.gov/pub/irs-pdf/fss8.pdf for guidance.

Mercury Computer Systems Selected To Deliver Hyperspectral Imaging System For Multi-INT Wide Area Surveillance Equipment

Mercury Computer Systems Inc., a trusted ISR subsystems provider, announced that it has been selected to provide a SWaP-optimized hyperspectral image processing and storage subsystem for multi-INT wide area surveillance equipment used on unmanned aerial vehicles

self employment tax advice for IT Contractors in London E14

Question: How much GST and Tax do you take out of your self contractor wages in Australia?

My hubby is starting a self contractor business and we where wondering how much GST and Tax do we have to pay to the government as everywhere we look its a different amount. Can any one help. Thanks

Answer: for self employed contractors, there’s a what’s called an ‘Instalment Activity Statement’ they could pay. what this activity statement basically means is after lodging a tax return advising the tax office you’re self employed and what your tax liabilities are for that year, the tax office will then assume your situation (in your case being self employed) to stay the same and estimate your tax liabilities for the coming financial based on the previous years’ return and issued out instalment activity statements for you to pay your tax in advance.

these statements will get divided into 4 quarters, which means if your tax liabilities for the previous year was $2,000 for example, they will increase this slightly to say $2,500 and you’ll pay 1/4 of $2,500, which is $625 every 3 months, so by the end of that financial year, you would have already paid $2,500 towards your tax bill. if you’ve paid too much, the tax office will refund the difference to you, if you’re still slightly short, then you’ll just pay the difference then.

the instalment activity statement system won’t start till your husband lodges his first return as a sole trader, in the mean time, put away about 20% of what he gets paid every week/fortnight, that should be enough to cover his tax liability.

as for GST, if he’s not registered for GST, there’s no need to do anything till when he does his tax return, if he is registered, just worked out how much money he’s make for that quarter, work out 10% of that total income then work out how much expenses for that quarter, work out 10% of the expenses, the difference of 10% total income and 10% total expenses is what he need to pay to the tax office for that quarter.

NRW wins & #36;112m FMG contract extension

NRW Holdings has won a 12 month contract extension for overburden mining at Fortescue & #39;s Christmas Creek project in Western Australia.

Contractor Insurances

Question: Employee NOT Independent Contractor-Employer lying?

I was classified as a IC not employee, I paid all my taxes, it was for one year. I was a manager of a business and knew the whole year I was an employee, but very scared I would be fired. I have now quit the job (they treated me terrible when I quit and withheld pay) I am thinking of filling out an SS-8 form and through my research they show what you send to the IRS they send to your former employer.So I am wondering: can’t your employer just lie and make it seem like you were an Independent Contractor? Thanks for your help….and any advice

Answer: There are specific rules as to who are independent and who are employees. If they get caught they will need to pay the SS and Medicare on your pay.
Go to IRS.Gov to see what the rules are. What I remember is you need to do less than 80% of the work for one company and hold yourself out to the public. You also can't do the normal work of the employer and they can't control your hours or have you do other duties.

Power Companies Seek 8.2 Percent Rate Hike in West Virginia

Appalachian Power and Wheeling Power say they're seeking an 8.2 percent rate increase in West Virginia

Tax Advice : Contractor tax advice

10 Tips to Buy or Sell Real Estate in 2010

If you’re trying to move in or out of a house in the coming year, these real estate tips will help.

Contractor Umbrella Calculator – Result