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Kmott4775
Joined: 14 Jan 2008
Posts: 12
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 Posted: Thu Jan 24, 2008 5:40 am Post subject: Am I a contractor or an employee- Photography Industry? |
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| I have been doing freelance photography for a few years now. Last year, I began working for a photography company who markets their services and then hires photographers like me to do their events (such as weddings, gala events, etc). Last year I worked steadily with them on average 3-4 days per week. They usually call me a week in advance to tell me what they have for the coming week, and I'm free to tell them which days I want to work. I provide my own equipment. All the company provides to me is the day of work, location, start time and end time. I also have to pay for my own transportation and whatever photography equipment I may use. I turn in my work every week, and they cut me a company check with no deductions. The only concern that I have is that I will need to pay for deductions myself. My question is if 1)it's possible for me to actually be an employee, even though I'm treated as an IC? 2)Would I be better off if I was on payroll? |
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koko96643
Joined: 22 Nov 2007
Posts: 72
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| Posted: Thu Jan 24, 2008 6:16 am Post subject: Am I a contractor or an employee- Photography Industry? |
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| You are actually a vendor of that company - you might want to set up an LLC so that you can take advantage of deductions you might not otherwise get.You are not an employee, so you are liable for both social security payments (7.6% employer, 7.6% employee) federal unemployemnt taxes, et al. That's why you don't get a W-2, but instead you get a 1099 form. You would need to find out what your salary would be, benefits, and transportation / supplies arrangement to see which one is better financially. One good thing, though, if you're laid off you get to collect unemployment! |
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KolioQweku
Joined: 02 Jun 2007
Posts: 58
Location: Washington
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| Posted: Thu Jan 24, 2008 6:52 am Post subject: Am I a contractor or an employee- Photography Industry? |
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| This is interesting, because clearly the photography company treats its agents as contractors and most likely is not giving anyone a choice of whether they are an employee. Based on many of the elements you mentioned (your equipment, your transportation) they are considering you a contractor. However, they are telling you where to go and when, right down to the start and end hours. They are telling you to take photos of events. (which is a little different from saying "paint me a masterpiece," and letting you go about creating it in whatever manner you see fit). If anyone is to get penalized for mis-characterizing the relationship, it will be the company that hires you, not you. If you are offered the opportunity to go on payroll instead of being a contractor, look at the total financial package, including social security, medicare contributions, workers comp contributions, labor & industry (injury on the job) insurance, any insurance they provide, any savings plan they provide, compared with your costs of providing those things to yourself as an employee with the balance of the contract rate they are paying. Those are the only things I can think of that you would compare, to see which financial package is better. |
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Knvfqokn
Joined: 24 Sep 2007
Posts: 57
Location: Wipetowi
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| Posted: Thu Jan 24, 2008 7:28 am Post subject: Am I a contractor or an employee- Photography Industry? |
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| it sounds like you are a contractor. You should ask about liability coverage and if you are covered for accidents on the job. Talk to an insurance agent about what coverage you need. If you were an employee they would have to withold tax and social security and pay unemployment insurance for you. And pay you for holidays . As a contractor you ned to pay that since you are self employed . |
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knilymbobbyic
Joined: 05 Dec 2007
Posts: 52
Location: Afghanistan
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| Posted: Thu Jan 24, 2008 8:04 am Post subject: Am I a contractor or an employee- Photography Industry? |
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| You are working as a subcontracted employee, and will have to pay taxes yourself. You will have a lot of deductions if you do it correctly. You need a licensed CPA - not someone who has been thru a 2 week course to do taxes at Jackson Hewitt or H & R Block. Go to a CPA who actually went to college, and who specializes in small business employee taxes. Call around and ask what each specialize in. Like docs, they often specialize. Also, ask people around you. It took me years to find my accountant, and he gets me back an average of 3 or 4 times what anyone else ever did. I'd change doctors, insurance companies, or maybe even jobs before I'd lose him! |
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