Being an ACTUAL independent 1099 worker has its benefits but a lot of companies will try to classify their w-2 workers as 1099 to avoid taxes and benefits despite them not fitting the criteria to be a 1099 worker. If you find yourself in this scenario its something you can sue them for.
The key with 1099 is that if you don't meet the requirements; meaning you don't supply your own tools and have little say in how you get your job done you aren't a 1099 employee. Many employers use 1099 as a way to avoid paying taxes.
Not only avoid paying taxes, but also avoid paying for employee benefits. Have to be careful to make sure all of it is made up in your quoted costs as an independent contractor.
I’ve been working for a company for 9 years now they have 1099 me since the beginning I’ve paid over 100k in taxes so far , no benefits, no unemployment, no vacation days not a god damn thing , these companies do this to avoid taxes and avoid so many other things , if I screw the job up I have to pay for it out of pocket it gets taken out my check , I’m a counter top installer granite / marble , this should be illegal by all means don’t get me wrong I make a good amount but considering everything I have to pay out of pocket plus taxes at the end of the year basically cutting a qtr of my salary && when the day comes that I can no longer lift granite and destroy my body I will be completely screwed , no unemployment no nothing this should absolutely be illegal this day and age I will gladly give up a percentage of my salary to no longer pay taxes as a sub contractor paying 10k plus at the end of the year is a heavy blow to me especially at my age , it’s just too much to deal with for me personally maybe others have a different opinion on that & would love to get the benefits that actual employees receive especially after 9 years of working for the same company started when I was 17 I am 26 now , never got a raise never got paid days off never got insurance and when I’ve gotten hurt and couldn’t work I was forced to stay home and not receive a single penny …. This is complete robbery in its worse form
@@bigdollaz - make sure you get short and long term disability insurance (which ever is not provided to you), credit card insurance, and loan insurance to make sure your bills are partially covered if ever you are disabled from an injury. This is separate from an OSHA rewards court case and make sure the insurance policies do not have a "coordination of benefits" that reduces their payouts to you. AFLAC duck comes to mind. I did this prior to my career ending disability over 30 years ago and it's provided me with a respectable means of living. It costs a little bit, but glad I did it.
@@quietobserver4636 I mean it’s easy to just say quit but when your dependent on the money your making to live ur life and take care of family plus knowing it will be difficult to find another job with the money im making doesn’t give me hope for a better outcome , but hey what’s money when u don’t have ur peace of mind I completely agree , I just have always looked at it as this is the outcome of my mistakes as a teenager not going to school and wanting to become a working man instead but I had no choice I didn’t have family or anyone to fall back on to go to school so I took the working route instead at 16 years old and been busting my ass since , 70-90 hours a week , this company I work for cuts corners each and every way to save money , label us as sub contractors but when I try to deny a job because I don’t feel comfortable doing it under certain circumstances all hell breaks loose lol and about 6 months ago I cut my leg with a angle grinder got 15 staples and was out for a month and to be honest ever since I’ve been back I’ve been pretty scared to work it’s like that grinder gave me ptsd which probably sounds ridiculous but it’s true I’ve never had that fear until I got my leg cut open , still hurts when I walk up steps . These companies will ruin some people and not think twice about replacing u when the time comes which is fucked up but hey modern day slavery were all a bunch of squirrels just trynna get a nut and they know this and use it to there advantage , I make 350 a day if anyone is wondering how much I make average 1600 a week but have to pay for tools and taxes at the end of the year but like I said money means nothing when u don’t have ur peace thank u guys for ur insight trynna figure out how to get out this rut I’ve put myself in
Right, but the problem isn't independent contractors who are actually doing contract work. There are companies who directly treat their employees like W-2 employees but without any of the protections of the W-2. I've worked as an independent contractor doing legitimate contract work, and for that work, the contract was great, and i did have a ton of freedom to do what I needed and enjoyed. But traditional W-2 employers started saying "what if we keep our expectations the same, but just claim our employees aren't actually employees: they're contractors."
Being a true independent contractor is great. However, there are MANY companies that simply use that to avoid paying taxes. Legaly speaking, If you have a set schedule/hours or uniform set by your employer you are not an independent contractor
My story is similar. I worked for a landscaping contractor for about 3 years steadily moving up through the company and achieving a supervisor position. It was a lot of hours 60 to 70 hours most weeks when my daughter was born I wanted to be able to spend more time with her so I went down to working 4 days a week with the landscaping company and then began branching out on my own. Took about six to eight months before I acquired enough of my own properties to be able to stop working for the Landscaping Company and go full-time independent. I am five years into self-employment, and I started a second company last year. It wasn't easy it didn't happen overnight but it did give me a level of Independence that I formerly thought was unachievable for myself it also afforded me a lot of time to spend with my daughter. My companies are not very big and I do not rake in the cash but the bills are paid and peace of mind is of the utmost value
Preach........ thats what I tell everybody. Time is your most valuable asset. I am not making big bucks either but the peace of mind is truly priceless. My industry is very toxic and it was this or find a new career. I don't think it's better anywhere else as long as you remain an employee. This kind of freedom will never be given to you.
I'm glad that it worked for you the problem is companies that force their workers to be independent contractors (when by any reasonable definition they are definitely employees.) In order to avoid providing legally mandated benefits to said independent contractor (employee).
Did you guys know that if you had the ability to be a 1099, and can keep track and put a Lilly money out of your payment for your work for taxes- YOU CAN WRITE OFF EVERYTHING YOU HAVE TO BUT TO KEEP YOUR BUSINESS going Which lowers your tax liability and many times can get you money back? A w-2 can maybe write off mileage. THINK SMARTER NOT HARDER! Get an accountant!😊
@@dre.ale.1191 EXACTLY. So rather than paying a regular salaries employee with legal rights and benefits to say maintain an apartment building or something like that…they just slap you with the cash. That’s the whole point in the comment he’s responding to. 1099 is just simply a loophole for companies to farm out work to people willing to do it for less. The same way people complain about illegal immigrants stealing jobs by being willing to work for less than others.
Working with a 1099 is great. I’ve done both w2 and 1099. Another plus about 1099 is all the things you can right off on your taxes like mileage on your vehicle tools and other equipment. Oh and you don’t have to work for people to u don’t like ;)
People who diss on a 10-99 probably have a hard time doing their taxes anywhere but turbotax. Its not hard to not spend every penny you make. Also as a 10-99 you can claim different types of business expenses and investments for that business for pretty decent tax breaks come time to file.
I am an independent contractor and I never have to worry about not being paid because the contract we hold is a government contract. I am a landscaper and we maintain a state recreational property. We maintain the landscaping and the mowing.
My last boss was screwing me over this way while saving himself money on taxes and i was paying an absurd amount in taxes with nothing to write off like job expenses and what not. I did the majority of the work and i had my own tools but he would keep me stuck everyday so i had absolutely no time at all for other projects and i never had any say in how a job was going. He started raging when I said I was leaving and said I'd never make it and this and that and even tried subbing me a big job for $800 claiming thats over 50% of what is pays but I knew better. Too bad i spent 3 years working for him because i was too young and dumb to realize what was going on.
OP is right, though. Companies like Shell use "contractors" in jobs that would normally have salaried staff, paying them even less than salaried staff, so they don't have to pay for leave or sickness, employer's tax or national insurance. Where I worked my team's "contractors" got 8 GBP an hour, no PTO and no paid sick leave, while the staff they hadn't been able to sack for legal reasons got 45 GBP an hour, PTO and paid sick leave. And their income tax was half of what the contractors paid.
I'm a contractor and it's amazing. I work two afternoons a week, make half my old salary, but get to take care of my son full time. When he goes to school I'll make more money with less work than when I was on staff.
@Yamaszlof Mcdurkin We are in Preston County, WV. We sold our farm in NV to buy this 122 year old farm house, re-hab it, and live off grid! We teach self reliance, and welding, as well as homesteading basics here on UA-cam, and Patreon!
That's awesome and how and independent contractor contract should work. That's awesome. I however have experienced quiet the opposite. Still having a boss who controlled every last bit of my schedule and daily work and tasks. I went into various positions hoping to be able to self regulate and get tasks done as I saw fit and within deadlines set by my contractors only to be micromanaged and punished for not making their scheduling demands that were not within my original contact to begin with. Alas the money was only that good for so long. Working for the man it is.
The word "contractor" implies that there were pre agreed upon conditions of work. Duration, expectations for completion, hours and breaks. If you haven't agreed upon those and put it into the... CONTRACT... you're just a fukn worker who that boss is willing to cheat for their gain. Everyone needs to learn this or else our most important service jobs will be forever undervalued. We'll get shit service from pussed off workers.
This is different depending on context. Many corporate places in some states will 1099 someone, but treat them like an employee and the employee has no recourse or protection. I lived in MA when the law changed, and companies were not allowed to exploit workers this way anymore. If you worked over 32 hours the company had to offer FT/benefit status. If you were a 1099 worker, the employer could not require minimum reqs for being at the office, u.a. So, doing your type of work and a 1099 might be good, but for corporate counterparts it might be more exploitative or vice versa.
Yes sir. Also, sole proprietors who only need one or two "helpers" to complete their tasks. They cant afford the extra administrative costs associated with payroll taxes, mush less the taxes.
I'm similar but after working for other people for almost 20 years, it's been tough to get used to paying taxes. Every 3rd month I have to make checks out & it's been tough to get used to. I think this year I did better but 🤷♂️
That's the exact situation I'm in right now, I started my own business last year and I've been doing 1099 work for a guy I used to work for, but I'm also able to do my own jobs separately at any time while I get a name and reputation built for myself
I hope it works out if it’s some creative field in the arts. But it sounds like you’re just getting exploited and paid in “exposure” as they used to tell us when I played in bar bands.
@Brandon Seasholtz I own a construction company that's just taking off, I instantly went from $40k a year to over $100k. I'm on track to do over $250k in business next year just with the work I already have on the books 18 months out. Working with my old boss just gave my the flexibility to branch out on my own and create a brand.
@@simeongray2645 Super impressive big boy salary. Good job. Anyway, try making the implicit point you’re trying to argue - explain how a 1099 employee wouldn’t do what you did based on his tax status
@Brandon Seasholtz Because there's no such thing as a "1099 employee." If you receive a 1099, you're an independent subcontractor and have the right to work for/with whomever you choose. At that point you effectively own your own business and work for yourself, and can therefore scale, or not scale, however you see fit...
I have been a fan of yours for a long time… and now I find myself laid off and cashing in my 401k. With that money I’m really considering becoming an independent contractor and starting with tech support until I can find regular dev work
The problem is that the vast majority of people getting a 1099 now don't fit the definition of an independent contractor. Companies are using if to get out of paying taxes, benefits and the minimum wage.
Lol. I get paid double. It's a way for companies to pay more to workers, less in taxes, and have more write offs. As an independent contractor I have about 300 companies a year. Both sides sign paperwork. I keep written evidence and take photos of my work. I've never been denied pay, but have had to occasionally share details for why my invoice was higher than agreed upon.
Some 1099 situations are predatory for the company to avoid taxes, but a lot of other 1099 situations actually make sense and bring a lot of business tax breaks and other flexibilities to the independent contractors. Also, paying more on taxes is just because you don’t have a portion automatically sucked out for taxes like in a W2 (could toss that excess in a savings and earn off it until tax time if you wanted). Most of the time the actual gross pay is negotiated higher as the contractor needs to pay for their own benefits, but the business is still getting a deal as the contractor isn’t necessarily a liability at that point. Lots of pros and cons to weigh, but with caution and negotiation 1099s can be lucrative over a W2.
@@livesofthefreemasons when the worker *can* benefit from being their own boss essentially. Like I said it’s not always better, but situationally it can be leveraged into the contractor’s favor if they are prepared.
@@NKBlazer My brother in Christ 😂 I asked you to explain how it’s a benefit not just retell me that it *can* be. I know that’s what you think. I do not think that. So please can you explain it?
@@oodlesofpoodles8353 So the benefit of being a 1099 contractor is using Uncle Sam to subsidize YOUR employer not offering healthcare? …that’s the exact point of the comment on this video my guy. It’s about NOT PAYING people and then telling them they’re smarter for it 😂
With 1099 take home is higher, cause taxes, social security, insurance, maybe even a pension hasn't been taken out. Plus, if the work isn't paid for, with hourly, you still get a check.
I think it truly can depend on the companies you work with, your line of work, and circumstances. I’ve seen people get hosed on contractor and gig work many times, but I’ve also made money doing gig work and contractor work. I don’t think there is any one rule of thumb for it other than to play it smart
When I was independent contractor, I made about double the average salary of the employee of the company I was working for you do the same job. They didn’t provide healthcare benefits, but my wage was significantly higher because I had to bring it outside help
@@livesofthefreemasons yes. He was EARNING double. But he didn't get to KEEP double lol. Still probably coming out ahead all things considered though.
@@sethwinters3556 right that’s my point 😂 Bragging about MAKING double then after everything making the same as everyone else except you have to do a bunch of tax bullshit and hiring…is hilarious
@@livesofthefreemasons yeah ik, im just being pedantic 😂 also, he'd still have to pay all those taxes anyways. I believe companies just pull it out automatically when you're an employee. So you just have to budget and make sure you're setting aside what you'd already pay. For someone who doesn't understand that though I could see how end of year you're like "huh?! I owe $5000?!?!". Could be wrong i this case though because I've never dealt with a 1099 myself.
Independent contractors is how you handle uncommon situations. It allows you as a roofing company for example to call a carpenter to repair structural damage for example without having a carpenter on the payroll only getting work a few times a year now that would be bad pay.
Bro Voiceovers your gonna make a shit ton of money in that. Do you hear yourself? It’s perfect for narrating man!!! Specially anything time period wise. as a person who kinda hates my recorded voice dude you have a talent
I work a w2 job and have also worked my own side company for years. my co workers all have been told horror stories about how it's all paperwork and you pay more taxes and that it's really hard. so none of them will ever branch out or do anything for themselves
There is a case to be made that independent contractor status works for some people, like it did yourself, however, that being said, far too many businesses try to use that status to avoid paying payroll taxes.
Being an independent contractor can be great, if you know how to budget for taxes, and are smart enough to carry your own independent contractor insurance. If the work is hard on the body, there's even insurance you can buy, In case you get injured and need to take some time off.
That's not what the comment was referring to companies love to push as many employees interbeing private contractors as possible. First, they don't have to pay unemployment or health insurance. Secondly, they legally can't unionize
People get confused between trades that actually benefit from contractors being independent and the companies that do so in order to cut overhead such as insurance and liability. It would help if people understand these differences before posting blanket statements about an employment method that works under the right circumstances. Just not when it manipulated to serve the bosses pockets and puts the employee at a great disadvantage, intentionally. That's criminal.
That may be great in your situation but there are people who aren't trying to do what you did and are fully employed by a company that's employs them as a contractor and it's just a way to avoid paying taxes and providing benefits. I might not be my own boss but I have great health insurance and retirement plan 40 + hrs a week and I get paid enough for a house 2 vars and my kids have everything they could ever need. Working for a company that cares about its employees is the best thing ever sure I may not start my own business but idc I'd rather hang with family than work 60 hrs a week to make what I'm making now without the perks.
"Independent contractor" is definitely something that is used by companies to avoid paying taxes and providing benefits, but there are definitely benefits to being a legitimate independent contractor.
@@rrjsc -You have a choice. Take the blue pill and you’ll wake up in your bed and everything will be as it was. Take the red pill and you will get the truth. No promises, no propaganda, only the TRUTH.
Being a true independent contractor is awesome but companies do use it as a way to just not take care of their employees too. It has become a very common practice.
That comment isn't talking about actual independent contractors. It's talking about people like truckers. Their boss might decide when they work, how long for, where they go, what they haul, how much they get paid, when they get paid, and all the other things a W-2 worker would be told, but they're still classified as independent contractors because taxes n stuff
its terrifying how many ppl are completely oblivious to their labour laws and right as an employee. Guys NEVER take you employer or HRs word for anything. Check your rights in your area and always have the number for the labour department on hand at all times
It can be good but the massive surge in 1099 workers is a result of companies avoiding taxes and benefits and creating business models where the only innovation is avoiding labor laws - Uber being a perfect example.
I think the comment is referring to misclassified employees. There's a growing problem of workers being put on 1099 when they don't have that flexibility that comes with being a 1099.
If you have an "employee mindset" as an independent contractor, your lack of funds is entirely on you. If you aren't ambitious then go back to a w2 job and call it average.
The only people who think a 1099 is a bad deal are either ignorant about having to pay ssi or are the type of people who believe they are owed an income because they exist.
Whoever wrote that comment clearly doesn't understand how work works. Haha. I've been self employed since age 19. Why make someone else's money when you can make your own. 🤷♀️
Companies often this label employees as independent contractors. They do not get the benefits of being considered employees such as unemployment or Social Security contributions. At the same time they are not truly independent so they get the worst of Both Worlds
I’ve been working for a company for 9 years now they have 1099 me since the beginning I’ve paid over 100k in taxes so far , no benefits, no unemployment, no vacation days not a god damn thing , these companies do this to avoid taxes and avoid so many other things , if I screw the job up I have to pay for it out of pocket it gets taken out my check , I’m a counter top installer granite / marble , this should be illegal by all means don’t get me wrong I make a good amount but considering everything I have to pay out of pocket plus taxes at the end of the year basically cutting a qtr of my salary && when the day comes that I can no longer lift granite and destroy my body I will be completely screwed , no unemployment no nothing this should absolutely be illegal this day and age I will gladly give up a percentage of my salary to no longer pay taxes and to get the benefits I should be recieving especially after 9 years of working started when I was 17 I am 26 now and my god how I have screwed myself over , never got a raise never got paid days off never got insurance and when I’ve gotten hurt and couldn’t work I was forced to stay home and not receive a single penny …. This is complete robbery in its worse form
@@bigdollaz if you are misclassified it is illegal and you may be owed. Possibly a lot if you are not paid overtime for more than 8 hours of work in a day or 40 in a week. File a complaint with the department of labor or consult an employment attorney. Look for wage and hour attorney
@@Will-wv9ct thing is I get paid by the day so if I work 19 hours or 6 hours I get paid the same amount of money , no 401k or anything just simply paying taxes every year as a sub contractor, I work atleast 70 hours a week 6am to 7pm on average 6 days a week , people have told me to contact a labor attorneys a lot of times I just never actually took the time to look into it , they have also had me sign paperwork multiple times about being a sub contractor about I’m responsible for multiple things . So I always assumed I screwed myself by signing just to keep my job for the sake of making a living
@@bigdollaz the thing about that subcontractor paperwork is it doesn't mean s***. The Department of Labor is going to look at whether or not you meet the definition of an employee under the law which if you're working that many hours you probably f****** do and you're owed a s*** ton of money. Lawyer
@@Will-wv9ct and I travel every week from Philadelphia to Pittsburgh which is a 5 hour drive never got a penny for driving it’s they pay for my hotel and that’s it as far as extra money for driving they assume I’m getting good money so it’s all in all put together and that’s why they pay me the amount they do because I travel so I make 50 bucks more than the average installer at my company but for those 50 bucks I have to drive 5 hours a day for 3 days a week including doing the installs lol it’s complete rubbish but I’ve always took it as it is what it is this is the outcome of the mistakes I made in my teenage years by not going to school and wanting to become a working man instead so I’ve always just took it on the chin as this is what happens when u don’t go to school and don’t take your early years seriously
It's definitely not black and white, the commenter is also right, the problem when somebody who isn't a contractor and doesn't have that work flexibility in-actuality is labeled as a contractor
A case of opposites both being true. It's indeed a great way to transition into a career, either by trying something new without so much expectation of commitment or to go it alone because one is super committed.
The real issue is with situations like the WWE (and smaller companies as well) where the people who are "contractors" are contractually not allowed to work for competitors, essentially the business has all the benefits of an employee (all their time and control over pay and priorities) and all the benefits if contractors (can fire when they want and don't need to provide retirement/insurance ect(
The commenter has no understanding of tax laws and how beneficial it is to be 1099’d instead of w-2’d 😂. It’s actually a way for companies to pay their “employees” MORE while providing their “employees” with an opportunity to shelter some of their income from being overly taxed, through the use of self-employment write-offs.
It’s not just construction and maintenance etc jobs. Doctors, teachers, sales people, etc are all being FORCED to take a job as an independent contractor, but then are pressured to basically be a real employee in practice. They can’t get jobs in their sector without being a 1099 worker. The system is being abused…. And yes in some states you can sue for benefits if they have been treating you like an employee. But they also aren’t paying any extra to account for your lack of benefits and double taxation.
Being an ACTUAL independent 1099 worker has its benefits but a lot of companies will try to classify their w-2 workers as 1099 to avoid taxes and benefits despite them not fitting the criteria to be a 1099 worker. If you find yourself in this scenario its something you can sue them for.
The key with 1099 is that if you don't meet the requirements; meaning you don't supply your own tools and have little say in how you get your job done you aren't a 1099 employee.
Many employers use 1099 as a way to avoid paying taxes.
Not only avoid paying taxes, but also avoid paying for employee benefits. Have to be careful to make sure all of it is made up in your quoted costs as an independent contractor.
I’ve been working for a company for 9 years now they have 1099 me since the beginning I’ve paid over 100k in taxes so far , no benefits, no unemployment, no vacation days not a god damn thing , these companies do this to avoid taxes and avoid so many other things , if I screw the job up I have to pay for it out of pocket it gets taken out my check , I’m a counter top installer granite / marble , this should be illegal by all means don’t get me wrong I make a good amount but considering everything I have to pay out of pocket plus taxes at the end of the year basically cutting a qtr of my salary && when the day comes that I can no longer lift granite and destroy my body I will be completely screwed , no unemployment no nothing this should absolutely be illegal this day and age I will gladly give up a percentage of my salary to no longer pay taxes as a sub contractor paying 10k plus at the end of the year is a heavy blow to me especially at my age , it’s just too much to deal with for me personally maybe others have a different opinion on that & would love to get the benefits that actual employees receive especially after 9 years of working for the same company started when I was 17 I am 26 now , never got a raise never got paid days off never got insurance and when I’ve gotten hurt and couldn’t work I was forced to stay home and not receive a single penny …. This is complete robbery in its worse form
@@bigdollaz you should just quit then.
@@bigdollaz - make sure you get short and long term disability insurance (which ever is not provided to you), credit card insurance, and loan insurance to make sure your bills are partially covered if ever you are disabled from an injury. This is separate from an OSHA rewards court case and make sure the insurance policies do not have a "coordination of benefits" that reduces their payouts to you. AFLAC duck comes to mind. I did this prior to my career ending disability over 30 years ago and it's provided me with a respectable means of living. It costs a little bit, but glad I did it.
@@quietobserver4636 I mean it’s easy to just say quit but when your dependent on the money your making to live ur life and take care of family plus knowing it will be difficult to find another job with the money im making doesn’t give me hope for a better outcome , but hey what’s money when u don’t have ur peace of mind I completely agree , I just have always looked at it as this is the outcome of my mistakes as a teenager not going to school and wanting to become a working man instead but I had no choice I didn’t have family or anyone to fall back on to go to school so I took the working route instead at 16 years old and been busting my ass since , 70-90 hours a week , this company I work for cuts corners each and every way to save money , label us as sub contractors but when I try to deny a job because I don’t feel comfortable doing it under certain circumstances all hell breaks loose lol and about 6 months ago I cut my leg with a angle grinder got 15 staples and was out for a month and to be honest ever since I’ve been back I’ve been pretty scared to work it’s like that grinder gave me ptsd which probably sounds ridiculous but it’s true I’ve never had that fear until I got my leg cut open , still hurts when I walk up steps . These companies will ruin some people and not think twice about replacing u when the time comes which is fucked up but hey modern day slavery were all a bunch of squirrels just trynna get a nut and they know this and use it to there advantage , I make 350 a day if anyone is wondering how much I make average 1600 a week but have to pay for tools and taxes at the end of the year but like I said money means nothing when u don’t have ur peace thank u guys for ur insight trynna figure out how to get out this rut I’ve put myself in
Right, but the problem isn't independent contractors who are actually doing contract work.
There are companies who directly treat their employees like W-2 employees but without any of the protections of the W-2.
I've worked as an independent contractor doing legitimate contract work, and for that work, the contract was great, and i did have a ton of freedom to do what I needed and enjoyed.
But traditional W-2 employers started saying "what if we keep our expectations the same, but just claim our employees aren't actually employees: they're contractors."
Welcome to ab5🙄
Like every single “gig” app (uber,Lyft, grub hub, ect.) but for actual contactors it’s great
@@christopherobrien6352 exactly
Being a true independent contractor is great.
However, there are MANY companies that simply use that to avoid paying taxes.
Legaly speaking, If you have a set schedule/hours or uniform set by your employer you are not an independent contractor
My story is similar. I worked for a landscaping contractor for about 3 years steadily moving up through the company and achieving a supervisor position. It was a lot of hours 60 to 70 hours most weeks when my daughter was born I wanted to be able to spend more time with her so I went down to working 4 days a week with the landscaping company and then began branching out on my own. Took about six to eight months before I acquired enough of my own properties to be able to stop working for the Landscaping Company and go full-time independent. I am five years into self-employment, and I started a second company last year. It wasn't easy it didn't happen overnight but it did give me a level of Independence that I formerly thought was unachievable for myself it also afforded me a lot of time to spend with my daughter. My companies are not very big and I do not rake in the cash but the bills are paid and peace of mind is of the utmost value
Excellent!
Preach........ thats what I tell everybody. Time is your most valuable asset.
I am not making big bucks either but the peace of mind is truly priceless. My industry is very toxic and it was this or find a new career.
I don't think it's better anywhere else as long as you remain an employee.
This kind of freedom will never be given to you.
Bills paid + peace of mind = sounds like the company doin fine
And this is absolutely correct
I'm glad that it worked for you the problem is companies that force their workers to be independent contractors (when by any reasonable definition they are definitely employees.) In order to avoid providing legally mandated benefits to said independent contractor (employee).
Did you guys know that if you had the ability to be a 1099, and can keep track and put a Lilly money out of your payment for your work for taxes- YOU CAN WRITE OFF EVERYTHING YOU HAVE TO BUT TO KEEP YOUR BUSINESS going
Which lowers your tax liability and many times can get you money back?
A w-2 can maybe write off mileage.
THINK SMARTER NOT HARDER!
Get an accountant!😊
Same! My husband and I became independent contractors, which eventually gave us the confidence to start our own business. Best decision we ever made.
In what field?
@@livesofthefreemasons we do property management (housekeeping, yard work, repairs etc)
@@dre.ale.1191 EXACTLY.
So rather than paying a regular salaries employee with legal rights and benefits to say maintain an apartment building or something like that…they just slap you with the cash.
That’s the whole point in the comment he’s responding to. 1099 is just simply a loophole for companies to farm out work to people willing to do it for less.
The same way people complain about illegal immigrants stealing jobs by being willing to work for less than others.
Working with a 1099 is great. I’ve done both w2 and 1099. Another plus about 1099 is all the things you can right off on your taxes like mileage on your vehicle tools and other equipment. Oh and you don’t have to work for people to u don’t like ;)
People who diss on a 10-99 probably have a hard time doing their taxes anywhere but turbotax.
Its not hard to not spend every penny you make. Also as a 10-99 you can claim different types of business expenses and investments for that business for pretty decent tax breaks come time to file.
I'm an IT independent contractor apprentice and make 25 an hour, I also have a full time job in sales.
Most economically free I have ever been.
How to become an IT independent contractor? Do I need to join a boot camp or go to college?
Proud of ya man, you made it happen on your own
I am an independent contractor and I never have to worry about not being paid because the contract we hold is a government contract. I am a landscaper and we maintain a state recreational property. We maintain the landscaping and the mowing.
My last boss was screwing me over this way while saving himself money on taxes and i was paying an absurd amount in taxes with nothing to write off like job expenses and what not. I did the majority of the work and i had my own tools but he would keep me stuck everyday so i had absolutely no time at all for other projects and i never had any say in how a job was going. He started raging when I said I was leaving and said I'd never make it and this and that and even tried subbing me a big job for $800 claiming thats over 50% of what is pays but I knew better. Too bad i spent 3 years working for him because i was too young and dumb to realize what was going on.
Thats how I started out! Good luck! Bro!
OP is right, though. Companies like Shell use "contractors" in jobs that would normally have salaried staff, paying them even less than salaried staff, so they don't have to pay for leave or sickness, employer's tax or national insurance. Where I worked my team's "contractors" got 8 GBP an hour, no PTO and no paid sick leave, while the staff they hadn't been able to sack for legal reasons got 45 GBP an hour, PTO and paid sick leave. And their income tax was half of what the contractors paid.
I'm a contractor and it's amazing. I work two afternoons a week, make half my old salary, but get to take care of my son full time. When he goes to school I'll make more money with less work than when I was on staff.
Keep killing it man! Self Mayed is all about that. It’s literally in the name!
@Yamaszlof Mcdurkin We are in Preston County, WV. We sold our farm in NV to buy this 122 year old farm house, re-hab it, and live off grid! We teach self reliance, and welding, as well as homesteading basics here on UA-cam, and Patreon!
That's awesome and how and independent contractor contract should work. That's awesome. I however have experienced quiet the opposite. Still having a boss who controlled every last bit of my schedule and daily work and tasks. I went into various positions hoping to be able to self regulate and get tasks done as I saw fit and within deadlines set by my contractors only to be micromanaged and punished for not making their scheduling demands that were not within my original contact to begin with. Alas the money was only that good for so long. Working for the man it is.
The word "contractor" implies that there were pre agreed upon conditions of work. Duration, expectations for completion, hours and breaks. If you haven't agreed upon those and put it into the... CONTRACT... you're just a fukn worker who that boss is willing to cheat for their gain. Everyone needs to learn this or else our most important service jobs will be forever undervalued. We'll get shit service from pussed off workers.
This is different depending on context. Many corporate places in some states will 1099 someone, but treat them like an employee and the employee has no recourse or protection. I lived in MA when the law changed, and companies were not allowed to exploit workers this way anymore. If you worked over 32 hours the company had to offer FT/benefit status. If you were a 1099 worker, the employer could not require minimum reqs for being at the office, u.a.
So, doing your type of work and a 1099 might be good, but for corporate counterparts it might be more exploitative or vice versa.
I am following and learning, I also want to be totally independent like you are
It's super handy for for companies that are seasonal, and or have a sporadic business.
Yes sir. Also, sole proprietors who only need one or two "helpers" to complete their tasks. They cant afford the extra administrative costs associated with payroll taxes, mush less the taxes.
@FU yes, and if that cost is too high then the business is no more.
@FU also a small business can keep people gainfully employed, and manage to support all parties, but add the extra expense and now you have nothing.
I really hope you continue to succeed
I'm similar but after working for other people for almost 20 years, it's been tough to get used to paying taxes. Every 3rd month I have to make checks out & it's been tough to get used to. I think this year I did better but 🤷♂️
That's the exact situation I'm in right now, I started my own business last year and I've been doing 1099 work for a guy I used to work for, but I'm also able to do my own jobs separately at any time while I get a name and reputation built for myself
I hope it works out if it’s some creative field in the arts.
But it sounds like you’re just getting exploited and paid in “exposure” as they used to tell us when I played in bar bands.
@Brandon Seasholtz I own a construction company that's just taking off, I instantly went from $40k a year to over $100k. I'm on track to do over $250k in business next year just with the work I already have on the books 18 months out. Working with my old boss just gave my the flexibility to branch out on my own and create a brand.
@@simeongray2645 Super impressive big boy salary. Good job.
Anyway, try making the implicit point you’re trying to argue - explain how a 1099 employee wouldn’t do what you did based on his tax status
@Brandon Seasholtz Because there's no such thing as a "1099 employee." If you receive a 1099, you're an independent subcontractor and have the right to work for/with whomever you choose. At that point you effectively own your own business and work for yourself, and can therefore scale, or not scale, however you see fit...
I have been a fan of yours for a long time… and now I find myself laid off and cashing in my 401k. With that money I’m really considering becoming an independent contractor and starting with tech support until I can find regular dev work
The problem is that the vast majority of people getting a 1099 now don't fit the definition of an independent contractor. Companies are using if to get out of paying taxes, benefits and the minimum wage.
I did roofing sales as an independent contractor and absolutely loved it
Yes to all above! Paying rent & living in the city with crime, drug trafficking and addicts gets annoying quick. I need peaceful living! ✌🏽✌🏼✌🏻
Great answer
I'm a subcontractor delivering flooring for a contractor making 75k a year working when I want...
Lol. I get paid double. It's a way for companies to pay more to workers, less in taxes, and have more write offs. As an independent contractor I have about 300 companies a year. Both sides sign paperwork. I keep written evidence and take photos of my work. I've never been denied pay, but have had to occasionally share details for why my invoice was higher than agreed upon.
I'm 1099 to I'm 19 and I work as a water tank operator we work on water towers and tanks for drinking water we scuba dive and clean them
Some 1099 situations are predatory for the company to avoid taxes, but a lot of other 1099 situations actually make sense and bring a lot of business tax breaks and other flexibilities to the independent contractors. Also, paying more on taxes is just because you don’t have a portion automatically sucked out for taxes like in a W2 (could toss that excess in a savings and earn off it until tax time if you wanted). Most of the time the actual gross pay is negotiated higher as the contractor needs to pay for their own benefits, but the business is still getting a deal as the contractor isn’t necessarily a liability at that point.
Lots of pros and cons to weigh, but with caution and negotiation 1099s can be lucrative over a W2.
You sound like a guy who knows just enough to get himself into trouble.
In what world is it a benefit for the worker to NOT be protected as a worker?
@@livesofthefreemasons when the worker *can* benefit from being their own boss essentially. Like I said it’s not always better, but situationally it can be leveraged into the contractor’s favor if they are prepared.
@@NKBlazer My brother in Christ 😂
I asked you to explain how it’s a benefit not just retell me that it *can* be.
I know that’s what you think. I do not think that. So please can you explain it?
@@oodlesofpoodles8353 So the benefit of being a 1099 contractor is using Uncle Sam to subsidize YOUR employer not offering healthcare?
…that’s the exact point of the comment on this video my guy. It’s about NOT PAYING people and then telling them they’re smarter for it 😂
@@livesofthefreemasons well, you can either bitch and moan about how the system works or make the system work for you.
With 1099 take home is higher, cause taxes, social security, insurance, maybe even a pension hasn't been taken out. Plus, if the work isn't paid for, with hourly, you still get a check.
Hell yeah that’s where the money is at
I think it truly can depend on the companies you work with, your line of work, and circumstances. I’ve seen people get hosed on contractor and gig work many times, but I’ve also made money doing gig work and contractor work. I don’t think there is any one rule of thumb for it other than to play it smart
It is absolutely used in the way that comment says, it's just not ONLY for that
1099 is merely a tool. It can be a tool used by you, or a tool used by your employer.
in some industries you have to be a fully independent operator to 1099.
How are you a contractor and your skin is so good!
I love independent contractors or any contractor,means I'ma have an easy day 😂
Ok cleetus McFarland the gig is up we know this is your second channel🤣
I love being an independent contractor, freedom to do when I want, and how I want, and ability to claim tools etc on taxes.
That's the key though. A lot of companies use 1099 but in reality just don't want to pay payroll tax.
When I was independent contractor, I made about double the average salary of the employee of the company I was working for you do the same job. They didn’t provide healthcare benefits, but my wage was significantly higher because I had to bring it outside help
So then were you EARNING double? 😂
@@livesofthefreemasons yes. He was EARNING double. But he didn't get to KEEP double lol. Still probably coming out ahead all things considered though.
@@sethwinters3556 right that’s my point 😂
Bragging about MAKING double then after everything making the same as everyone else except you have to do a bunch of tax bullshit and hiring…is hilarious
@@livesofthefreemasons yeah ik, im just being pedantic 😂 also, he'd still have to pay all those taxes anyways. I believe companies just pull it out automatically when you're an employee. So you just have to budget and make sure you're setting aside what you'd already pay. For someone who doesn't understand that though I could see how end of year you're like "huh?! I owe $5000?!?!". Could be wrong i this case though because I've never dealt with a 1099 myself.
He was grossing double and netting more as long as shit didnt hit the fan with an injury or similar.
Independent contractors is how you handle uncommon situations. It allows you as a roofing company for example to call a carpenter to repair structural damage for example without having a carpenter on the payroll only getting work a few times a year now that would be bad pay.
Bro Voiceovers your gonna make a shit ton of money in that. Do you hear yourself? It’s perfect for narrating man!!! Specially anything time period wise. as a person who kinda hates my recorded voice dude you have a talent
That's what I do but backwards lol I have been on .y own as a contractor up untill 3 weeks ago now I have a boss and still run my own business
I work a w2 job and have also worked my own side company for years. my co workers all have been told horror stories about how it's all paperwork and you pay more taxes and that it's really hard. so none of them will ever branch out or do anything for themselves
There is a case to be made that independent contractor status works for some people, like it did yourself, however, that being said, far too many businesses try to use that status to avoid paying payroll taxes.
I follow and aspire to be in a situation similar where I can be completely independent. Will you make a video simplifying the steps
Being an independent contractor can be great, if you know how to budget for taxes, and are smart enough to carry your own independent contractor insurance. If the work is hard on the body, there's even insurance you can buy, In case you get injured and need to take some time off.
Sounds like a ton of extra work just to call yourself an “entrepreneur” at the end of the day.
That's not what the comment was referring to companies love to push as many employees interbeing private contractors as possible.
First, they don't have to pay unemployment or health insurance. Secondly, they legally can't unionize
People get confused between trades that actually benefit from contractors being independent and the companies that do so in order to cut overhead such as insurance and liability. It would help if people understand these differences before posting blanket statements about an employment method that works under the right circumstances. Just not when it manipulated to serve the bosses pockets and puts the employee at a great disadvantage, intentionally. That's criminal.
As a contractor you have a contract that oulines expectations. You dont have to go beyond those legally
Yeah when I was a subcontractor I worked for multiple companies who paid me by the square foot.
That may be great in your situation but there are people who aren't trying to do what you did and are fully employed by a company that's employs them as a contractor and it's just a way to avoid paying taxes and providing benefits. I might not be my own boss but I have great health insurance and retirement plan 40 + hrs a week and I get paid enough for a house 2 vars and my kids have everything they could ever need. Working for a company that cares about its employees is the best thing ever sure I may not start my own business but idc I'd rather hang with family than work 60 hrs a week to make what I'm making now without the perks.
"Independent contractor" is definitely something that is used by companies to avoid paying taxes and providing benefits, but there are definitely benefits to being a legitimate independent contractor.
The brim of his hat looks like a face with a little clawed hand reaching over the edge LOL
Best life ever!!!
1099 works if you HAVE A LOT OF SELF CONTROL AND PLAN WELL FOR TAXES
ITS DEFINITELY NOT FOR EVERYONE
Plus, you don’t have to pay taxes!!! Yay!!
???.um yes you do. Now he has to file quarterly.taxes
Depends how much he gets paid in cash versus check, card, etc...
It is the moral obligation of all Americans to pay as few taxes as possible.
@@willcresson8776 -That is correct. In fact, it’s part of a quote from Benjamin Franklin.
@@rrjsc -You have a choice. Take the blue pill and you’ll wake up in your bed and everything will be as it was. Take the red pill and you will get the truth. No promises, no propaganda, only the TRUTH.
@@yourfreedomisanillusion and it's the damn truth. Love you knew where I was going with it
Being a true independent contractor is awesome but companies do use it as a way to just not take care of their employees too. It has become a very common practice.
Going through that stage now
That comment isn't talking about actual independent contractors. It's talking about people like truckers. Their boss might decide when they work, how long for, where they go, what they haul, how much they get paid, when they get paid, and all the other things a W-2 worker would be told, but they're still classified as independent contractors because taxes n stuff
its terrifying how many ppl are completely oblivious to their labour laws and right as an employee. Guys NEVER take you employer or HRs word for anything. Check your rights in your area and always have the number for the labour department on hand at all times
I'm starting to be an independent welder
its both thats the thing you have to know your rights and when it stops being a 1099 and starts being a benefits deal
Even your cowboy hat has a lip ring
It can be good but the massive surge in 1099 workers is a result of companies avoiding taxes and benefits and creating business models where the only innovation is avoiding labor laws - Uber being a perfect example.
I think the comment is referring to misclassified employees. There's a growing problem of workers being put on 1099 when they don't have that flexibility that comes with being a 1099.
If you have an "employee mindset" as an independent contractor, your lack of funds is entirely on you. If you aren't ambitious then go back to a w2 job and call it average.
it really depends on the work though.
The only people who think a 1099 is a bad deal are either ignorant about having to pay ssi or are the type of people who believe they are owed an income because they exist.
It really depends, but 8/10 its a ploy
absolutely
¡Hijole! Que bonita barba😂😂😂
You went full beard growth
Whoever wrote that comment clearly doesn't understand how work works. Haha. I've been self employed since age 19. Why make someone else's money when you can make your own. 🤷♀️
Are you in Roane County Tennessee? My MIL lives in Rockwood.
Independent contractors are the we have a use for you, but not enough of a use for you to offer you a job people
You hiring 😂 I'd move my whole family out that way I hate living near St.Louis
You hate STL...? I'm thinking of moving to Troy or around there in the future.
How do companies find “independent contractors”?
It's does create a lot of pay issues.
Yeah, it CAN be used to screw over workers, but it also CAN be used to gain independence or other benefits over employees.
Nothing about being a W-2 employee means you can’t gain independence 😂
I’m pretty sure he’s missing the point, its about companies using the alternate employment status to deny labor rights.
Companies often this label employees as independent contractors. They do not get the benefits of being considered employees such as unemployment or Social Security contributions. At the same time they are not truly independent so they get the worst of Both Worlds
I’ve been working for a company for 9 years now they have 1099 me since the beginning I’ve paid over 100k in taxes so far , no benefits, no unemployment, no vacation days not a god damn thing , these companies do this to avoid taxes and avoid so many other things , if I screw the job up I have to pay for it out of pocket it gets taken out my check , I’m a counter top installer granite / marble , this should be illegal by all means don’t get me wrong I make a good amount but considering everything I have to pay out of pocket plus taxes at the end of the year basically cutting a qtr of my salary && when the day comes that I can no longer lift granite and destroy my body I will be completely screwed , no unemployment no nothing this should absolutely be illegal this day and age I will gladly give up a percentage of my salary to no longer pay taxes and to get the benefits I should be recieving especially after 9 years of working started when I was 17 I am 26 now and my god how I have screwed myself over , never got a raise never got paid days off never got insurance and when I’ve gotten hurt and couldn’t work I was forced to stay home and not receive a single penny …. This is complete robbery in its worse form
@@bigdollaz if you are misclassified it is illegal and you may be owed. Possibly a lot if you are not paid overtime for more than 8 hours of work in a day or 40 in a week. File a complaint with the department of labor or consult an employment attorney. Look for wage and hour attorney
@@Will-wv9ct thing is I get paid by the day so if I work 19 hours or 6 hours I get paid the same amount of money , no 401k or anything just simply paying taxes every year as a sub contractor, I work atleast 70 hours a week 6am to 7pm on average 6 days a week , people have told me to contact a labor attorneys a lot of times I just never actually took the time to look into it , they have also had me sign paperwork multiple times about being a sub contractor about I’m responsible for multiple things . So I always assumed I screwed myself by signing just to keep my job for the sake of making a living
@@bigdollaz the thing about that subcontractor paperwork is it doesn't mean s***. The Department of Labor is going to look at whether or not you meet the definition of an employee under the law which if you're working that many hours you probably f****** do and you're owed a s*** ton of money. Lawyer
@@Will-wv9ct and I travel every week from Philadelphia to Pittsburgh which is a 5 hour drive never got a penny for driving it’s they pay for my hotel and that’s it as far as extra money for driving they assume I’m getting good money so it’s all in all put together and that’s why they pay me the amount they do because I travel so I make 50 bucks more than the average installer at my company but for those 50 bucks I have to drive 5 hours a day for 3 days a week including doing the installs lol it’s complete rubbish but I’ve always took it as it is what it is this is the outcome of the mistakes I made in my teenage years by not going to school and wanting to become a working man instead so I’ve always just took it on the chin as this is what happens when u don’t go to school and don’t take your early years seriously
Where does one start if they want to become an independent contractor
It's definitely not black and white, the commenter is also right, the problem when somebody who isn't a contractor and doesn't have that work flexibility in-actuality is labeled as a contractor
1099 baby!
Space Cadet that swallows
Oh snap! It the Polar Express train conductor!!!!
Worst advise.
Being independent, you have to save 30-40% of your wages for taxes.
W2 all the way, takes the guess work out of it.
A case of opposites both being true. It's indeed a great way to transition into a career, either by trying something new without so much expectation of commitment or to go it alone because one is super committed.
The real issue is with situations like the WWE (and smaller companies as well) where the people who are "contractors" are contractually not allowed to work for competitors, essentially the business has all the benefits of an employee (all their time and control over pay and priorities) and all the benefits if contractors (can fire when they want and don't need to provide retirement/insurance ect(
Gosh, you are so cute.
The commenter has no understanding of tax laws and how beneficial it is to be 1099’d instead of w-2’d 😂. It’s actually a way for companies to pay their “employees” MORE while providing their “employees” with an opportunity to shelter some of their income from being overly taxed, through the use of self-employment write-offs.
just because some companies use it in a predatory way doesn't mean that's all its for
It’s not just construction and maintenance etc jobs. Doctors, teachers, sales people, etc are all being FORCED to take a job as an independent contractor, but then are pressured to basically be a real employee in practice. They can’t get jobs in their sector without being a 1099 worker. The system is being abused…. And yes in some states you can sue for benefits if they have been treating you like an employee. But they also aren’t paying any extra to account for your lack of benefits and double taxation.
Stop paying taxes and start your own practice. Dont be a tax cattle
We want to come make a tree house and live with yall 😆 🤣
Sometimes self employed not too bad ha less bullfrog crap😅