Contractor is taking too long to finish job -- should he pay ME?
good just have him sign the paper that he will be done by that time and give him the $6K that way you will end up owing him less by the time he's done. but you my friend the bill of rights in amendment 4,5,6, or 7 states that if someone is not done or he just doesn't show up you can sew him by all the money you payed him and he didn't finish your job. but just gibe him time and if you actually see him working hard at least 5 days a week you could be pretty sure he will be done by the second deadline.
UK: My boss cancelled my contract as an employee. I'm now a contractor how much should I charge them?
As a contractor, you will be responsible for paying both employer's and employee's national insurance. Exactly what those will be will depend on all kinds of things, but you should probably assume that they'll come to 25.8% (12% employer + 13.8% employee.)So, if you are currently on a salary of £24,000 (or £2,000 a month), then you'll need to invoice them £24,000 * 1.258 = £30,192 a year.This works out at £2,516 per month.Please note that, assuming you currently get 28 days holiday a year (including public holidays), then there are about 232 working days in the year.This is to say that you need to invoice them £130 per day (£30,192 / 232)BUT there are some other costs that previously they bore:If you were still an employee, they'd be contributing to a pension fund for you. Assume that's equivalent to another 10% on top of the £130 - making it £143 / day total.Running the books / doing accounts for a contractor business like this will probably cost you £400-800 a year (depending on how much you use an accountant, and how complex your books will be.) Based on the mid-point, that's an extra £2.60 a day. That gets us to about £146 / day.If you are off sick, will they continue to pay you? Because at the moment they do. So asking you to NOT be paid if you're off sick is equivalent to some sort of pay cut again.So, TO BREAK EVEN, you have to end up charging about £150-160 a day. (Obviously, you'll need to run a similar analysis based on your actual salary, rather than the £24,000 I picked to make it easy to divide by 12 :-) )If you actually worked for them for 2 years (rather than just under 2 years), then you should have been entitled to some redundancy pay.Overall, given the way they've treated you, I'd suggest your best option is to either ask for a nice raise, or find another job....
As contractor how do I ask for pay rise?
Try this: Name Address Phone Email Date Supervisor Company Name Address Phone Dear (Supervisor Name): I request an opportunity to meet with you to review my salary. I feel that this is the appropriate time for a salary review because [choose one, or write your own:]. "I have been with the company for a year without a raise", or "I have recently made a significant contribution to the company", or "annual review is approaching/overdue", "we agreed to review my salary after the first three months". I was hired by [your company name]for my ability and experience in ....[review the reason they wanted you]I believe that an increase in my salary is now warranted.[state why you deserve the raise; here is a list to help you; pick one or two, not too many] I have successfully taken responsibility for ... I have a number of accomplishments to my credit:... My knowledge and skill in ... has allowed the company to... I have demonstrated an ability to work independently and take initiative. I put in long days, weekend work, and "on-call" work. I have taken initiative, for example... I have been working at this salary for XX months; a change in pay level is appropriate. I work independently, keeping the cost of supervision to a minimum. I assume and handle management responsibilities, traditionally highly paid work. My responsibilities have increased... I have demonstrated a commitment to the company. I would like you to know that I view my future at [company name] very positively. I want to continue to ... I anticipate some day... I have been led to believe that you are satisfied with my work, so I am confident that you will want to sincerely consider my request. I look forward to hearing from you very soon. Sincerely,
What is a tier 1, tier 2 contractor?
If you get awarded the contract to do something, but you can't do everything that's required, you can sub-contract with a different company. For example, I might employ a master builder to make me a new house, and I pay him, but he arranges to have an electrician, a plasterer and a kitchen fitter come and work for him for a few days each. This idea of services being provided by people at different levels of subcontracting can be considered tiers... like the tiers in a wedding cake. At the top level (tier zero, if you like) you have the main contractor. He employs the kitchen fitter, and I don't necessarily have to know anything about it. The kitchen fitter is tier 1, and is chosen by the guy at tier 0. If the kitchen fitting company decides they need a specialist to do some tiling or something, they will employ a tiler for a day or two... and that's tier 2. In the gulf oil spill scenario, BP is at tier zero, Transocean Ltd is a tier 1 contractor, and anybody who supplies goods or services to Transocean is tier 2. For example, maybe Hyundai Heavy Industries, who built the Deepwater Horizon drilling rig.
Why would my employer want a W-9 from the hotel they pay for me to stay at?
Well the only reason for a W-9 is for information to report amounts paid to someone that isn't an employee. And Bobbie is very wrong this probably is not a required report! If I had to guess...your company has a bookkeeper that knows enough to be dangerous, but not enough to be professional. If you are staying at an established Hotel, I would assume they have enough sense to be some type of corporation...therefore, there isn't a need to issue a 1099 to this company. In almost all cases a 1099 isn't require if the payments are made to a corporation! Hope this helps!
Why does Lorraine Kelly have to pay a lot less tax (in the UK) if she is classed as self employed? Isn't this a massive tax loop hole? Do lots of other high earners do this? Update: HMRC lost the case against Lorraine Kelly (link in comment)
Why does Lorraine Kelly have to pay a lot less tax (in the UK) if she is classed as self employed? Isn't this a massive tax loop hole? Do lots of other high earners do this?“Self-employed” is not really a tax status. She (or anyone, actually) can be either a Sole Trader, in which case all income of any kind is lumped together and taxed as one.Or she (or you) can be an employee of her own Limited Company, in which case the Limited Company takes the income, pays the same corporation tax on the same rules as any other Limited Company, and pays her salary on the same conditions as anyone else, on which she pays personal tax on the same as anybody else.The efficiency comes from the fact that her own company is a far more efficient business than a corporation, with no HR department, no managers, no building maintenance, no cafeteria - all of those things that employers have to use profit to pay for, and cut salaries to pay for.The other major aspect is the risk you face, which is larger than being a conventional employee. Your own company has no reserves to keep going if the work dries up. Tax law recognises that it is riskier, and allows a (slightly) less onerous regime.You don’t have to be a high earner to use this setup. Typically, the people who do use it are skilled workers in some sense; they wish to get the maximum out of their effort and skill, without paying for fat cats to sit in marble-lined corporate offices.Have you ever visited a bank HQ? That is an eye-opener for what life can be like if you have access to Other People’s Money, and can exploit workers.Update: Lorraine Kelly smashes IR35 case in ‘embarrassing’ defeat for HMRC