There is much tension around the issue of work relations, especially for people who have been previously in experiencing some sort of negative consequences, frauds or diminishing of their work status.

Being hired on new position, individual should not only listen to what has been said by HR specialist or employer directly – it’s also very important to know under which document you are going to make money transaction report.

Employer or Subcontractor?

Sometimes people who work same amount of hours and having same work position pay twice less for their taxes or they receive cash while you being paid by check. Those factors are being discussed by on first job interview but some of workers might be surprised by the end of the work year that they have to pay medicare/soc. security on their own.

If you ever feel like this moment was not discussed at the first instance and you got form 1099-MISC by 31 of January – contact IRS and lawyer immediately. If you were told that you have same rights as official employed people but you still have doubts – ask colleagues whether they are time-to-time subcontractors or work and use W2 document.

Economy 1099 or why to pay more

Some business owners establish mixed or cloud business. Economy 1099 means that all workers are freelancers that have certain perks to this – usually they are people who are in search for side job or use this job since it offers more flexible work graphic. It’s nobody surprise how owners of such business are not willing to pay for their taxes and care about sick days, etc. Be careful and search on company information before fill out of application form is done.

Life of self employed

When you provide any services to other business entity or a person over the year and earn above 600 bucks – payer must send you 1099 report. Usually at the start of the work you should’ve been given a W-9 paper – it works as follows: information put in W-9 helps payer to complete MISC doc.

Working for yourself may be a need for some of us due to life situations and their own desire – community of freelance people grows everyday so some of appropriate behavior rules were established over the years as back then was invented dress code.

Act as Subcontractor

Some people don’t mind doing their own taxes and dealing with all those papers but there should always be some rules that each freelancer should follow:

  1. If you work remotely – send your work giver a confirmation of each received document and don’t disappear for long periods of time.
  2. Make sure you know all dates and time you spent working for the person/business.
  3. Never falsify any data provided to work giver.