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Reply to Washington
Hi,
I am Wayne21's wife not him, but I am also an accountant.
I would need more information to determine if you should be an IC or an employee.
1. If you are writing off a lot of your living expenses, because of having a home office then you are probably better off being an IC....but if you are not writing off many expenses you would be better off being an employee.
2. The IRS does not really give you a choice though. If the company is telling you when, where and how to do a job then you are an employee.
3. An IC decides when and where they are going to work, and it does not sound like you are being given this choice, but maybe you are. An example of an IC pilot would be if I told you that I wanted a package flown to Brazil and it had to be there by Thursday. You use my plane, but choose when to leave as long as you get it there by Thursday.
4. As an employee I would tell you that you had to leave on my schedule.
5. As an IC you are paying double your Medicaire and Social Security tax which translates to you are paying 15.3% instead of 7.65% of every dollar you earn
6. As for Income Tax being withheld from your check, you can adjust your W-4 to where nothing or very little comes out. I can't tell you how to do that here though. Just remember that with each dependent/exemption you put on your W-4 the less withholding they take out.
7. You need to consider the Workers Comp insurance. Almost all applicants are asked about that. If you are actually hurt and draw WCI it is not held against you, but if you ever sue they do look at that closely.
8. You seem to be strapped for cash, and if you get hurt without WCI you are really going to be in a mess. WCI is designed to pay your medical cost, and a portion of your lost wages in the event you are injured on the job through no fault of your own.
9. Planes do breakdown and it is a rough landing when they do it in the air, so strongly consider being insured if it ever happens.
I hope this helps,
Robbi
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