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Thread: Employee From an Independent Contractor Question

  1. #1

    Default Employee From an Independent Contractor Question

    Hi Everyone,

    I was just turned into an employee from an independent contractor. I still work as an independent contractor under how it's described and I'm trying to figure out what the benefit is for someone like me to be an employee (with taxes withheld from my checks now), though I don't receive any benefits, I don't have a stable income or set pay, and still buy my own equipment every so often to get the job done without reimbursement. I'm worried that I won't be able to deduct expenses like my mileage and gas expenses as I still go out and do jobs outside of the location and equipment purchases. Thanks for any input.

  2. #2
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    Steve B's Avatar

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    You need to ask your boss these questions. Your expenses and mileage in most companies would be reimbursed via an expense report. But, we can't tell you what your company's expectations and policies are. It sounds like your company has done a lousy job of communicating if you still have these questions. I would schedule a meeting with your boss to get these things clarified.
    Steve B

  3. #3
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    First - It's not the company that decides if you are an IC or an employee. There are a set of guideline that must be met for a company to call you an IC. Those guidelines are set by the tax code.

    There are some advantages to being an employee. You will now only pay for half of the SS and med tax. In addition, you will now have unemployment insurance.

    The downside, is that you will not be able to deduct your mileage to work. However, I think you can still count other non-reimbursed expenses.
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