1099 _ MI Contracter

[chords]

Start a new job in MI . Dont know anything about it in MI . Nothing. Paid by a company check for hours worked including driving around in MI. How are taxes handeled, and paperwork recorded. Not me cause I dont work, but interested how this other person should do this..

 

[polarisrider1]

This will take awhile. Not sure my typing finger is up to it. Best have him contact his tax man for all the "correct" answers. I do 1099's for all my subs.

 

[ezra]

he will get a 1099 in 2016 for the amount of $ he has been given in 2015. he then pays tax on that amount - what ever expenses he can deduct

 

[polarisrider1]

he will get a 1099 in 2016 for the amount of $ he has been given in 2015. he then pays tax on that amount - what ever expenses he can deduct

And it gets complicated from there. Set it up so you send in quarterlies. Lots of "rules" if going the 1099 route.

 

[chords]

Taxes was my one big question. Unlike a paycheck with witholdings, are taxes paid monthly or quarterly ?
I didnt believe the IRS would let it go for the whole year. Like I said this is someone else who has no knowledge of whats involved and really has nothing to lose. No assets, house, savings or car and already has MI 2014 refund garnished that wont even come close to covering a past debt.

 

[ezra]

well it is a hazy area . some say u have to pay quarterly . but my accountant tells me it is prob a good idea if u cant save money . but legally your bill is not due until apr 15. I my self refuse to give them a red cent until apr 15th. my cashers check has been on the desk for over 30 days but I wont send it in till the 15th. I have done it this way for over 20yrs. my 1099s are pretty limited prob less than 15% of the gross. but at 1 time they were 90% same deal.

 

[sw_lower]

And pay both hafts of social security..

 

[chords]

Yeah I guess Soc Sec is a part of this also. Didnt think of that.

 

[ezra]

all biased on what u make after deductions. most self employed guys don't make much money after deductions . your corporation /business has no SS liability

 

[polarisrider1]

And pay both hafts of social security..

Hafts? Darn phones.

 

[sw_lower]

Hafts or Half still to much to social security....

 

[jonesin]

all biased on what u make after deductions. most self employed guys don't make much money after deductions . your corporation /business has no SS liability

the corp/business has no ss liability but the person receiving the 1099 does
i just went through this with my 15 yr old son, writing a check to fed for $195 and state for $10 for soc sec taxes, 15% of what he made.
he didnt have to pay income taxes because he didnt make enough.