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The New Economy, Rash of Self Employed Coming Soon?

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posted on Nov, 8 2009 @ 11:27 AM
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Have you ever dreamed of owning your own business? Your in luck, you’re about too! That’s right; the new health care bill might ensure that you become a self employed independent contractor.

Will small business’s go out of business with the additional taxes and expenses that result from the new health care bill requirements or will they simply layoff all employees and subcontract independent contractors?



www.irs.gov...=99921,00.html

It is critical that you, the business owner, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee.

You do not generally have to withhold or pay any taxes on payments to independent contractors. If you are an independent contractor and hire or subcontract work to others, you will want to review the information in this section to determine whether individuals you hire are independent contractors (subcontractors) or employees.

Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be -

An independent contractor
An employee (common-law employee)
A statutory employee
A statutory nonemployee

In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered.

Common Law Rules

Facts that provide evidence of the degree of control and independence fall into three categories:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?



What will stop small business from doing this? As a small business owner I am seriously looking into this as a solution to the additional burdens my government is handing me that I simply can’t afford! Some of the additional benefits to me are that I can require that the independent contractors provide their own general liability, workers compensation and the myriad of other expenses I currently pay for as part of my overhead and cost of doing business.

Any thoughts out there on this idea?


[edit on 8-11-2009 by liveandletlive]




posted on Nov, 8 2009 @ 01:09 PM
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What the government is doing is nothing short of an attack on the financial system from the bottom up. Either they haven’t taken into consideration what they are doing to small business or they know exactly what they are doing.

Some of the downfalls of the “self employed” independent contractor.
www.nase.org...



posted on Nov, 8 2009 @ 01:54 PM
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Pretty sure that what will happen is that tax revenues will shrink dramatically.

What makes you think the newly "independent contractors" will voluntarliy send in their taxes?

Fat freaking chance.

My best guess is that very few will do so. Think of it a moment: would you? Knowing that the money will wind up in the hands of Goldman-Sachs and the other banksters?

and what will the government do May 30th when they finally realize that people are voting with their dollars? Arrest everyone?



posted on Nov, 8 2009 @ 03:47 PM
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News Flash ~!
**** Self Employed - Will be Filing for Bankruptcy in the next 12 months.
at least half of all self employed companies will be out of business in the coming year. the reason - continued Job declines and personal bankruptcies. the dominoes are fixing to start tumbling. I figure most are hanging on to file bankruptcy on Jan. 01. 2010. I imagine that to start topling some dominoes on its on....
I have been trying to figure a support mechanism out. I guess we are going to have to wait and see who is financially fit to survive the coming famine in Retail... so, go ahead and become a self employed like you got a choice.... it dont matter - this is the perfect storm. just keep waiting for something to happen. as it looks right now. there will only be one employer and that will be Uncle Sam. no sunshine in self employed.



posted on Nov, 8 2009 @ 04:09 PM
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reply to post by liveandletlive
 


none of this is 'new'... there are many 'liberties' taken by businesses (actually Employers) who tell you when, how, what your going to
be doing at that day's 'work'...
but they say your not an Employee, your an independent contractor on their 'books'.

construction &fruit pickers are prime examples of this practice

next, the business (employer) can list you as a 'casual employee' meaning you are not covered by unemployment or have eligibiliy to 401k, or health care or any 'benefits' of a full-time employee.

these (jerks) have been gaming the system for decades...
getting advantages for their businesses, sticking it to the Schmucks who had no choice but accept the terms of employment.


many of those high-profile, minority companies (that are so praised & held in high esteem) are another form of predatory businesses, taking overt advantage of the 'bodies' that get hired, then worked-to-death at unreasonably low wages - because-they-can ,...or else You hit the Road !


there's many snakes-in-the-grass out there & they've been 'protected' by the elitist system for decades

[edit on 8-11-2009 by St Udio]



posted on Nov, 8 2009 @ 04:23 PM
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reply to post by St Udio
 


Do you think that companies other than the “predators” that you mentioned might be forced into the same practice for self preservation?



posted on Nov, 8 2009 @ 04:38 PM
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Originally posted by apacheman
Pretty sure that what will happen is that tax revenues will shrink dramatically.

What makes you think the newly "independent contractors" will voluntarliy send in their taxes?

Fat freaking chance.

My best guess is that very few will do so. Think of it a moment: would you? Knowing that the money will wind up in the hands of Goldman-Sachs and the other banksters?

and what will the government do May 30th when they finally realize that people are voting with their dollars? Arrest everyone?


I agree that tax revenue will decrease but not because people wont pay. As an independent contractor rather than a w2 employee you will be able to write off everything from fuel to tools of the trade. If you do it right you will break even or make a very small profit thereby decreasing revenue for taxing authorities.




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