Knowing the difference between an independent contractor and an employee is essential for business owners who plan to do any hiring. Business relationships between workers and employers affect employment taxes, and incorrectly classifying someone as an independent contractor may cost you money. The Internal Revenue Service has a set of guidelines rather than a predetermined checklist for classifying workers for tax purposes. Workers may be considered employees, statutory employees, statutory non-employees or independent contractors.

• 130k Salary

Jun 20, 2019 - Business is the only place you can earn an average wage OR an. I think the big difference is between 'accountants' at companies. A cost engineer or contract administrator as it is what I am good at. Much better pay and conditions e.g. Sales and management side of. User #480673 248 posts.

Statutory WorkersA statutory employee is an independent contractor who may be treated as an employee in certain employment tax situations. He must work for you on a regular basis, and must not have made a major investment in non-transportation supplies. Licensed real estate agents and direct sellers may be considered statutory non-employees. Statutory non-employees are considered self-employed for tax purposes, provided most of their income comes from sales and not hourly pay.

They must sign a contract agreeing not to be treated as employees. Employment TaxesIn addition to withholding federal income tax from employees' pay, you must withhold Medicare and Social Security, and match the amount withheld. You are also required to pay federal unemployment tax, or FUTA, separately from other taxes. Independent contractors are required to provide their taxpayer identification numbers by filling out and returning form W-9 to you. You are also obligated to submit form 1099-MISC to independent contractors by Jan.

130k Salary

This form is the independent contractor's version of a W-2.

Hi,First of all, I'd like to extend you a warm welcome to the Community Forum. I hope you find it a valuable resource.In your Chart of Accounts from Accounts command centre Accounts ListCost of Sales check all the accounts are set up.

That is the place that all your direct costs related should be entered such as hireage costs and freight that relates to the business. As you hire and pay freight it should be coded to 5-xxxx (cost of sales). Once coded to 5-xxxx account it will reflect in your Profit & Loss Statement and show a Gross Profit as well.Please do let us know how you go as we are happy to assist further and feel free to post again should you have any other queries. Hi,Thanks for updating us with more information.When entering your transactions you need to manually code your transactions to COS account whichever is applicable. As for Freight usually there is a linked accounts for purchases that you can set up.

From SetupLinked AccountsPurchases Accounttick 'I pay freight on purchases' and code it to 5-xxxx account to Freight. That will also post it to cost of sales account as shown below:Once coded then you will get a Gross Profit figure with COS deducted from Sales.Please do let us know how you go as we are happy to assist further and feel free to post again should you have any other queries.