HomeContractorQuote.com
How do allowance for benefits work for a contractor?
I just accepted a job offer to work from home. The employer says there is an allowance of 5,000 part time and 7,000 full time. What does that mean and am I going to have to pay the taxes around tax time? I've never worked on a commission only structure and also independent contractor. Any help would be appreciated! Thank you
Public Comments
- A contractor gets a 1099-Misc. If they are sweetening the deal by saying they will give you $5000 more to help you pay for expenses, that will be additional taxable income to you. You are responsibly for paying your own taxes using a schedule C, schedule SE and sending in your own taxes quarterly. Plan on paying 30-40% in taxes.
