Contractor vs Employee

Contractor vs Employee

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Image: – – Macho Spouse


employee-contractor-300x270.jpgSo, you have a job offer and the employer offers you employment as either an independent contractor or an employee. You figure that since your wife is in the military, you don't need the insurance and your paycheck will be bigger without all that withholding taken out.

Life as a 1099'er

Ready to take that 1099? Not so fast. You might be in for a big shock at the end of the year. Here is a list of some of the hits you'll take.

• All the income taxes for each taxing entity will be due every quarter after your first year in business. A total of 90 percent must be paid by April 15 of the following year or there will be a penalty.

• You will have to pay the entire Social Security tax. That amounts to 15.3 percent on your first $113,700 and 2.9 percent over that amount. Employees get half that amount paid by their employer automatically. However, as a self-employed individual, you may deduct the half that an employer would have contributed.

• Independent contractors are not covered by non-discrimination laws, wage and hour protection, unemployment insurance, or pension and benefit protections that “real” employees receive.

• If you drive or run other equipment for the business that pays you, you won't be covered by the employer's insurance policy. Guess who that leaves?

What Makes an Employee

The basic issue in deciding whether a person is an employee or an independent contractor is the business's control over the work of the person. This sounds like a simple matter, but courts constantly are deluged with arguments about this issue.

If you're told when to come to work; if you don't provide your own equipment or supplies; and if you are paid in set increments such as hours or piecework, you are an employee, period. If they train you, you are an employee. The courts have made clear that just because the employer doesn't decide to use control, doesn't mean you are then an independent contractor. The crux of the matter is whether they have the right to do so. Read the IRS publication about the issue of contractors vs employees.

Making the Right Decision

Before you make any decisions, take some time to investigate and consider which category works best for you and your family. If you are leaning toward becoming an independent contractor, make sure you're prepared to save enough to cover your tax expenses and any additional costs like liability insurance.

Consider incorporating as a LLC to protect yourself and give you additional tax protection. It's a good idea to get the help of a paralegal, lawyer and tax specialist.

If you are considering becoming self-employed, be certain to read the IRS Bulletin Understanding Employment Taxes. This is a simple document that explains what the requirements are in everyday language.

This post was sponsored by the School of Firearms Technology from the Sonoran Desert Institute.

See also...

image for SAHD Life: My First Daddy-Daughter Dance

SAHD Life: My First Daddy-Daughter Dance

Father-Daughter Sweetheart Ball - Picture Booth

The YMCA Adventure Guides Father-Daughter Sweetheart Ball was not on my radar until a good friend of mine told me how he takes his daughters each year. I thought, "Cool! You and your girls are really excited about this thing, huh?" When my wife started getting emails about the event, there was no controlling her excitement. She was even talking about renting a car for the night!


In case you didn't know (like me), a daddy-daughter dance allows dad an opportunity to set an example and standard for how his daughter should be treated on a date. It is also an opportunity for dad to build that special bond with his daughter and make special memories.

Okay, based on the description above, I tossed the whole daddy-daughter dance thing out the window because my daughter and dating don't even go together in a sentence. And I can build that special bond with my daughter at the creek - FISHING!

But I thought about the whole thing (I do a lot of thinking) and with my "try-almost-anything-once" attitude, I went all in.

That's right! I went to my first daddy-daughter dance AND I LOVED IT!

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2015 'Thank You' and Year In Review

malemilitaryspouse_2015_YIRIt's the holiday season and to me that means spending time with family and friends while reflecting on the year that was. How many had a good year? How many of you feel as if you've accomplished, overcome, loved and laughed as much as possible? There have been a few bad years in my life where I just wanted the damn thing to finish so I could start fresh with a clean slate, it's a mindset, but we all know that reality doesn't work that way. I usually judge my life in a similar way as to how we judge football coaches, “what have you done for me lately.” My year was a good one, a net-positive. So congratulations, you get “happy Chris,” or at least “less grumpy and sarcastic Chris.”

The tremendous amount of progress within the male military spouse community is one reason why 2015 was a good year. Guys, we're finally starting to get some recognition. People, businesses, and other organizations are starting to approach us and ask for our input, insight, and yes, our business. Marketers are finally recognizing that we are a demographic worth pursuing; just check out this holiday spot from Toys R Us. (I just bought 4 gift cards for my nieces from them because of this commercial.)

In 2015, Macho Spouse was approached by the Sonoran Desert Institute's School of Firearms Technology to hold the first ever “Male Military Spouse Appreciation Day” where SDI donated a full-tuition scholarship to their popular Gunsmithing certificate course. (Male military spouses are a large demographic for them.) USAA asked for our participation to help raise awareness on the importance of life insurance during “Life Insurance Awareness Month.” Yeah, I didn't know that month existed before this opportunity either, but USAA sure knows that we exist! And Marriott really knocked us off our feet when they offered several nights worth of hotel stays in return for a few reviews on their TownePlace Suites properties. TownePlace Suites made it very clear that they are interested in helping military families who are on the road, from PCSing to family vacations, TownePlace Suites wants our business!  And it's not like this is some shabby hotel chain guys, their rooms are usually very spacious, clean, come with fully equiped kitchens, and hot breakfasts.  I was surprised to learn how many were actuallyl located near military installations, which makes them a great temporary housing option, or vacation get-a-way. In full disclosure, I dispersed their generous offering quietly among those guys who have helped keep Macho Spouse up and running over the last few years. We don't make any money here, so when a top-notch organization such as Marriott offers us some swag, I like to spread it out amongst our volunteers first. If you want access to some of this cool stuff, contact me and be prepared to help build our community. But while I'm speaking of TownePlace Suites, you guys should check them out because they're really showing their appreciation and commitment to our military community! That goes for USAA and Sonoran Desert Institute as well, these organizations aren't just talking about supporting male military spouses, they're actually doing it. So let's not forget to return this generosity in 2016.

While I'm patting others on the back, I can't forget the amazing content NextGen Military Spouse,, and Military Spouse delivered on behalf of male military spouses in 2015. When I started Macho Spouse in late 2011/early 2012, there was nearly nothing…nothing, written for or about us male military spouses. No blogs, no websites, no Facebook pages, no nothing. Now look at us, male spouses are popping up everywhere! (We've probably had absolutely nothing to do with this trend, but I will take full credit.) So despite terrorism, politics, war, and racial unrest, life hasn't been all bad this year. It's been good enough for me to crack a cold one, light a cigar, sit back and reflect on how far we've come and how many goals are still left to accomplish. Don't worry, I won't be consuming and driving while reflecting, Dana and I have already booked our New Year's Eve room at the San Antonio Riverwalk TownePlace Suites. Happy 2015 everyone, have a safe holiday season!



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