Re: Agencies & Self-empl tax

Subject: Re: Agencies & Self-empl tax
From: Ron Miller <RSMH -at- AOL -dot- COM>
Date: Tue, 2 May 1995 16:20:25 -0400

Dave Demyan writes:

I don't know about that, Dave. I have been a freelancer for over seven years
and have worked as a 1099 contractor for all that time. If there is a problem
with this, it is on my client's end, not mine as the contractor. I have
worked for a lot of firms that deal this way. Although I often get work
without an agency's assistance, when I do, I bill the agency and receive a
check. I still get a 1099 at the end of the year, and this is through
perfectly reputable agencies. I don't want to get into a debate over tax laws
here, but I know a lot of freelancers, and most of us work in this fashion.

I have a CPA and she has never indicated that this is a problem at all. I pay
quartlerly taxes as a self-employed sole proprietor. This is certainly not a
way around paying taxes. In fact, I pay more because I have to pay Social
Security as both employer and employee (a whopping 15% or thereabouts). So
there are no loopholes here.

By the way, I do all my work at home, so this may be the difference. I don't
think you should be panicking people unless you are really certain of the

Ron Miller
RSMH -at- AOL -dot- COM

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