Are Taxes Taxing Your Indy Contractor’s Life?

The life of the freelancer has begun to lose its appeal. You set yourself up as a contractor several years ago. At first, the freedom and variety was highly appealing. But you never thought lining up clients, invoicing them, and then having to gather the required 1099 forms at tax time would be so time-consuming and anxiety provoking.

Because a freelancer only gets paid when working, you discovered you were spending hours every month managing administrative tasks – precious hours you could not bill anyone for.

Worse, you were unsure whether you were managing these tasks properly. Your newfound sense of freedom began to disappear at a rate equal to the amount of time and stress occupied by billing and tax matters.

So you are looking for a change, and working for a staffing service calls to you. Let them find you a gig and handle the billing.

But what about taxes? This was one of the most stressful elements of your life as a contractor. Will the staffing service take care of that as well?

Any reputable temporary staffing service will treat you as an employee, not as an independent  contractor. As a result, the agency is your employer of record. The agency will provide you with a W-2 form. Now, instead of waiting anxiously for multiple forms to arrive in the mail (if they arrive at all), you will receive yours promptly after the first of the year.

And just like any employee, you have the right to claim deductions from your income.

That’s not all. The agency will be paying your Society Security, Medicare, and unemployment taxes. All those responsibilities that fell to you as a contractor are now managed by the staffing service.

So go ahead, make the switch. Concentrate on what you do best – your work – and let an agency like Apprentice Personnel handle the rest.

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