Can my S-Corp pay me as an independent contractor rather than an employee?
813930
I'm not fully sure, but offhand I think the answer here is not a good idea.\n\nThe IRS looks at the line for officer's compensation in comparison to the rest of the return looking for someone trying to take all their compensation out via dividends.\n\nAlthough this isn't your case, I think it would be hard to argue that you are an independent contractor because of your relationship with the company.  Generally, this is a hot button issue with the IRS as many 'think' they can fit into the independent contractor because the definition is really vague.  \n\nIn any case, I'd consult your tax advisor for a look during your tax planning.
1171353
Yes, they pay SS tax just like everyone else. In fact because some are self employed, they pay twice as much. The "company's" share and the "employee's" share.\n\nThere is no exemption if you earn more than $100,000!!! You pay the max!!
47405
You.  If the employer did not pay taxes or withheld any from you, you are considered an independent contractor and should pay your own taxes.  If they paid for you, you would have received a W2 form from them.
952578
You can give yourself as much time off as you want. You can also pay yourself whatever you want while you're not working... just remember to declare it accurately to your accountants and the tax office.
734425
Most employees will receive a W-2 at the end of the year, showing their earnings from that employer and what has been deducted.  The employer will deduct social security (and pay the employer half), and federal, state and local income taxes if applicable, as well as other deductions such as insurance.\n\nSome workers are independent contractors.  At the end of the year, they receive a 1099 instead of a W-2, and they have to pay all their own taxes including both halves of the social security amount.
504022
Depends..\n\nAre you working for yourself, in your own practice?  Is so, you'll be buying your own insurance, vacation will be time you don't get paid, etc....\n\nAre you working in a corporate office?  Then your benefits are part of your package from the corporation, usually consisting of Insurance, Vacation, and other perks.
692682
In addition to the things already noted, an employee is protected in many more ways than an independent contractor. For instance, independent contractors are not subject to many of the provisions of the Fair Labor Standards Act, such as overtime provisions. A recent example of a conflict over the difference is a court case in which FedEx, which classified its drivers as independent contractors, was forced to classify them as employees and make back pay and reimburse them for various things.
781131
You can count it as a contribution (money in) and a distribution (money out) if you are a corp.  This has no tax consequence as you are paying yourself back. Normally start up costs are to be amortized.  If you are a sole-proprietor, you can take the profits, it's your money.
1052232
Here is an example of an independent contractor agreement. Hope it helps. Good Luck!\nINDEPENDENT CONTRACTOR AGREEMENT\n\nThis Independent Contractor Agreement ("Agreement") is made and effective this [Date], by and between [Consultant] ("Consultant") and [Company] ("Company").\n\nNow, therefore, Consultant and Company agree as follows:\n\n1.  Engagement.\nCompany hereby engages Consultant, and Consultant accepts engagement, to provide to Company the following services:\n\n[Description of Services]\n\n2.  Term.\nConsultant shall provide services to Company pursuant to this Agreement for a term commencing on [Term Start Date] and ending on [Term End Date].\n\n3.  Place of Work.\nConsultant shall render services primarily at Consultant's offices, but will, upon request, provide the services at Company offices or such other places as reasonably requested by Company as appropriate for the performance of particular services.\n\n4.  Time.\nConsultant's daily schedule and hours worked under this Agreement on a given day shall generally be subject to Consultant's discretion, provided that Consultant and Company anticipate that Consultant shall work on average [Expected Time Working] hours per week in the performance of services pursuant to this Agreement.  Company relies upon Consultant to devote sufficient time as is reasonably necessary to fulfill the spirit and purpose of this Agreement.\n\n5.  Payment.\nCompany shall pay Consultant [Pay Rate] for services performed pursuant to this Agreement.  Payment shall be made [Pay Schedule].  Consultant shall bear all of Consultant's expenses incurred in the performance of this Agreement.\n\n6.  Covenant Not to Compete.\nDuring the term of this Agreement and for a period of [Time Period] thereafter, Consultant shall not within [Restriction Area], directly or indirectly, either for his own account, or as a partner, shareholder, officer, director, employee, agent or otherwise; own, manage, operate, control, be employed by, participate in, consult with, perform services for, or otherwise be connected with any business the same as or similar to the business conducted by Company.  In the event any of the provisions of this Section 6 are determined to be invalid by reason of their scope or duration, this Section 6 shall be deemed modified to the extent required to cure the invalidity.  In the event of a breach, or a threatened breach, of this Section 6, Company shall be entitled to obtain an injunction restraining the commitments or continuance of the breach, as well as any other legal or equitable remedies permitted by law.\n\n7.  Confidentiality.\nDuring the term of this Agreement, and thereafter [Confidentiality Period], Consultant shall not, without the prior written consent of Company, disclose to anyone any Confidential Information.  "Confidential Information" for the purposes of this Agreement shall include Company's proprietary and confidential information such as, but not limited to, customer lists, business plans, marketing plans, financial information, designs, drawing, specifications, models, software, source codes and object codes.  Confidential Information shall not include any information that:\n\nA.  is disclosed by Company without restriction;\n\nB.  becomes publicly available through no act of Consultant;\n\nC.  is rightfully received by Consultant from a third party.\n\n8.  Termination.\nA.  This Agreement may be terminated by Company as follows:\n\ni.If Consultant is unable to provide the consulting services by reason of temporary or permanent illness, disability, incapacity or death.\n\nii.Breach or default of any obligation of Consultant pursuant to Section 6, Covenant Not to Compete, or Section 7, Confidentiality, of this Agreement.\n\niii.Breach or default by Consultant of any other material obligation in this Agreement, which breach or default is not cured within five (5) days of written notice from Company.\n\nB.
930641
This is also called a IRN and is used by business to pay employ taxes ect. Just as you have a SSN each business has an IRN number. You can get this on line and for free. I believe the web site is www.irs.gov
932273
an independent contractor.
220434
It depends on a couple of things.  First if the company is incorporated in that other state then yes you can.  Second if the company is not incorporated in that state, but does business in that state then yes you can.  Lastly if the company is not incorporated and does not do business in that state then you can not.  Also it depends on the contract (if one was signed or agreed to).  If the contract says that it can only be filed in a certain state, then it must be filed in the state that is listed.
245353
only if you have paid employees, not including yourself.
46551
If you had set hours, set tasks, and used his tools you probably aren't a independent contractor.  Are you sure this guy is a lawyer?  Look up his name on your local state bar website.  If he says he's a lawyer and he isn't, he's breaking the law.  A labor lawyer would have told you up front that you are considered an independent contractor because your situation is not uncommon.   Of course you have to pay taxes; the self-employment tax rate is 12.4% (up to a limit) for Social Security, and a 2.9% Medicare tax on all IC income.  There are some set guidelines on what makes an independent contractor.  Disputes usually occur when an employer wants to pay a worker under the table to avoid taxes. \nMy advice, seek out a pro-bono attorney.  There are law clinics for people who don't have a lot of money, or need assistance because they are new to the country.  Call you state and local bar association for information.  Check out the website Findlaw to read some basics on employment law.  Don’t fear the government if you owe back taxes.  Even if you were an independent contractor and failed to pay taxes on time the government will allow you to set up a payment plan.  One more thing, document everything - every discussion, phone call, message you have with your old employer.  You will need this information.\nGood luck!
647642
Only if you are paid an hourly rate.  If you work commission or salary then no.
1181599
If a company runs out of money, employees have several possibile ways to collect. \n\nFirst, go immediately to the Department of Labor's Employment Securities Commission. \n\nReporting there does several things. First, you can get information on other jobs, possibly unemployment benefits, and the department of Labor has ways to force employers to pay up. If you get a paycheck that bounces, the DOL can get your money for you. It takes a while, but that's better than not getting your wages at all.\n\nAnd notify the Social Security Commission. Employers must pay your Social security taxes.\n\nAnd notify the Internal Revenue Service. Employers must pay the IRS the money they have deducted from your wages. The IRS can shut a business down and take an employer's personal assets to recoup social security, medicare, and withholding taxes for you.\n\nIf your employer is a corporation, the officers of the corporation have less accountability than the owners of a company, but the IRS has ways.
377946
I would be inclined to check out the tax office to see where you stand on making your tax and ni payments.  If you don't have a contract that states that they'll be paying it you are effectively classed as self employed and therefore responsible for paying your own tax and ni.\n\nHope this helps\n\nDawn\nhttp://www.quitthat9to5.com