Am I a independent contractor?
If you had set hours, set tasks, and used his tools you probably aren't a independent contractor. Are you sure this guy is a lawyer? Look up his name on your local state bar website. If he says he's a lawyer and he isn't, he's breaking the law. A labor lawyer would have told you up front that you are considered an independent contractor because your situation is not uncommon. Of course you have to pay taxes; the self-employment tax rate is 12.4% (up to a limit) for Social Security, and a 2.9% Medicare tax on all IC income. There are some set guidelines on what makes an independent contractor. Disputes usually occur when an employer wants to pay a worker under the table to avoid taxes. My advice, seek out a pro-bono attorney. There are law clinics for people who don't have a lot of money, or need assistance because they are new to the country. Call you state and local bar association for information. Check out the website Findlaw to read some basics on employment law. Don’t fear the government if you owe back taxes. Even if you were an independent contractor and failed to pay taxes on time the government will allow you to set up a payment plan. One more thing, document everything - every discussion, phone call, message you have with your old employer. You will need this information. Good luck!
Independent contractor questions?
I work as an independent contractor. As this is my first time, I have questions. all the employees used to get paid in cash. Do other people get paid in cash? What’s the difference between an employee and independent contractors? I work for a company that is an out of network provider and we provide non surgical treatments. My employer doesn’t want to get rid of me. Can I get advice?
If a independent contractor steals money. What happens?
The individual would be guilty of theft. For criminal charges the company did nothing that is illegal. For a law suit, the customer would have a choice of who to sue. They can sue the individual, which would be an automatic win because he's already been convicted of theft (I'm assuming). They can sue the company. I'm not sure to what extent the company is liable. I think you would have to prove that the company did something wrong. For example, if the company didn't make any effort to check on this contractor. The advantage of suing the company is that they probably have more money. So if it's a large amount you would sue the company because your more likely to get paid. Damages are limited to what was stolen. So if less then $1000 was stolen you would go after the person, because it's easier to prove and you can do it in small claims court. Unless the company did something to encourage the individual to steal. For example, the company could be a front for the mafia or a gang, and this is how they go about stealing from people. Then the company and the officers of the corporation might all be guilty of theft.
How is being an independent contractor better/worse than employee?
The biggest diadvantage isnt paying your own taxes, it is paying for both your share and the 'employers' share of your social security and medicare taxes. (Thats an extra 7%). You also have to pay your own health insurance costs. The only advantage of being a 'private contractor', is officially you are contracting to perform a duty, and do not have to abide by company rules. (For example, a company legally may not set work hours for a contractor, only the scope of the work to be performed. ) As a contractor, you must have a contract. Insist upon it (That is why they call it 'contractor'.) That way you are protected. remember, it is also much easier to fire a contractor than an employee. Contractors are not protected by state employment laws, or discrimation rules. Generally speaking, it is always better to be an employee than a contractor.
Tax experts: If I made about $7k a year as an independent contractor, how much tax would I have to pay?
I'm completely new to paying taxes instead of receiving a refund and have no idea how they work. If you're familiar with how it works, can this question be answered with an estimation? Also in state of FL if that helps. Thanks for reading and answering :)