What Tips off the IRS?
Protect your status
If you are working as an independent contractor, it is crucial that you know what you are entitled to and what is required to operate your business.
The number one issue is to pay your own taxes. Many businesses are required to give you a form 1099 and report the taxable income they have paid you. But, as an independent contractor, it is your sole responsibility to pay your own income and self-employment taxes. You may need to make estimated tax payments during the year to cover your tax liabilities.
As an independent contractor, you are not entitled to file claims for:
- Unemployment benefits
- Workers compensation benefits
- Disability benefits
Doing so could subject you and the firm who hired you to an audit by the Internal Revenue Service or State EDD department.
The information provided in this website is only intended to be general summary information to the public. It is not intended to take the place of legal advice or specific laws and regulations. This website provides general information about the law, designed to help users understand their legal needs, however, no guarantee is made that the information provided in this website is correct, complete, or current. The information contained on this website is not intended to be relied upon in any manner as legal advice, which is the application of law to an individual's specific circumstances. While we use our best efforts to ensure that the information on this website is current and accurate; it is recommended that you seek legal advice from an attorney as to the application of any information on this website and your interpretation of it, to your particular situation. netPolarity is not responsible for, and expressly disclaims all liability for damages of any kind arising out of use, reference to, or reliance on any information contained within the site.