Worker Shortages and Impact on ER

[2B]

I'm technically an employee; but if my employer doesn't get a contract, I'm toast.

 

[Ed_The_Gypsy]

Delawaredave,

I am contracting in Canada. I don't get a w-2.

When I contract in the US, I am not an independent contractor. I am an employee of the shop and I get a W2, but I only get paid when they have a contract. I can't deduct anything, but I do get a big chunk of my compensation cut out as per diem.

It is not complicated. Better than trying to do it 100% on my own.

Ed

 

[perinova]

Do contractor agencies pay you under a W2 or a 1099 ? Do you have a choice ? If it is a 1099, I'm assuming you can be "set up as your own business" - with you as an employee - and deduct business expenses assoicated with finding/executing your contracting - correct ?

If it is a W2, my understanding is expenses are deductible only above an AGI percentage.

Thanks for any comments.

yes you are right about the deductions. I am not sure if there is always a choice but you can at least try to find the type of contracting that suits you better:
W2 (employee of contract agency). unreembursed expenses on 2106 and schedule-A is valid only if you itemize
1099 (under your own SS) use schedule-C
CORP-to-CORP (under your company SS) S-copr use schedule K and that's a lot more complicated.
Maybe an unincorporated business can use schedule-C I am not sure?

 

[Spanky]

I read an article about "Virtual Companies" - companies where nearly all functions are outsourced webs of independent contractors - teams are pulled together for products/projects from people around the world who collaborate electronically.

How about outsourcing management or CEO?