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  • #1

    Hi Epinephrine

    Does anyone have experience in private contracting and what the tax requirements are in the US? I have a dilemma that I'm pretty sure I'm right about, but I thought I'd get a little extra advice.

    The backstory is that I do a little private web programming on the side. For the last year or so, I've just been doing business as myself (no LLC or whatever). Recently, I finished up a project for a company, and they're asking me to fill out a W-4 form for them.

    Am I wrong, or should I not have to fill one out for them, since I'm not an employee? Or do private contractors have to do these too?

    Also, I'm going to be forming an LLC in the next couple of months--will I have to do this then?
    Music and medicine, I'm living in a place where they overlap.
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  • #2
    I'm pretty sure as far as they're concerned, as a private contractor you should fill one out. Things could get hairy if you don't.
    5:royst> i was junior athlete of the year in my school! then i got a girlfriend
    5:the_paul> calculus is not a girlfriend
    5:royst> i wish it was calculus

    1:royst> did you all gangbang my gf or something

    1:fermata> why dont you get money fuck bitches instead

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    • #3
      Harry :wub:
      Originally Posted by HeavenSent
      You won't have to wait another 4 years.
      There wont be another election for president.
      Obama is the Omega President.
      http://wegotstoned.blogspot.com/

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      • #4
        Hi Dr. Schlyrd
        Epinephrine's History of Trench Wars:
        www.geocities.com/epinephrine.rm

        My anime blog:
        www.animeslice.com

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        • #5
          I think filling out the W-4 is fine, the only difference is you need to be getting a 1099 back from them, not a w-2, to do your taxes with since you're a vendor to them and not an employee

          Edit: and I think you will have to do it regardless of what you do in the future. If you weren't an LLC when you did the job you have to file that income as self-employed or whatever
          -Dave

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          • #6
            taxes?
            it makes me sick when i think of it, all my heroes could not live with it so i hope you rest in peace cause with us you never did

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            • #7
              Originally posted by Da1andonly View Post
              Harry :wub:
              it makes me sick when i think of it, all my heroes could not live with it so i hope you rest in peace cause with us you never did

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              • #8
                Mr. Fitty, did you not like my vid?
                Maybe God was the first suicide bomber and the Big Bang was his moment of Glory.

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                • #9
                  My wife is an independent contractor. I'm pretty sure you don't need to fill out a W-4 in either case. Actually, I don't think you ever need to fill out a W-4 ever, even if you are a full time employee. But specifying some withholding only helps you come April 15 so that you don't owe too much money and get penalized.

                  If you are contracting on the side and have a full-time job, you could enter a really high number of allowances on your full-time employer's W-4 to "cover" the taxes you will owe from your side job. There's also a line on the W-4 to enter "Additional amount, if any, you want withheld from each paycheck", which you could use to do the same thing.

                  The other way to do it is to file quarterly estimates, since it's sometimes hard to guess what you might make from your side job. And as far as that goes, I think if you file all your estimates anytime before 1/15 (the last quarterly date), you won't get penalized on 4/15. As far as I can tell you don't have to actually file each and every quarterly due date.

                  Bottom line, make sure your withholdings from your full time job + your estimates you send in cover 90% of the tax that will be due or 100% of the previous year's total tax due.

                  http://www.irs.gov/faqs/faq9-3.html

                  Your part time contracting company shouldn't need to do anything with your taxes since you aren't an employee. Having said all that, just ask and see if they come up with a good reason that I haven't thought of.

                  Also, you can send in W-4s at any time to change your withholdings throughout the year. So you can adjust it if you score a big contract or if things are looking lean. At this point, any W-4s you give to your employer would affect mostly 2008 since this year is about over.

                  Lastly.....I thought Epi was Canadian?

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