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Hertford, NC | You could always become a contractor if you wished too. You could contract to provide services to your current "employer", and any other "customer" who would have need of your services. The benefit of being a contractor is that you can take advantage of taking lots of things off of your taxes such as cell phones, uniforms, tools, computers, vehicles, insurance, fuel, home office, and anything else necessary for you to perform the contracting services that you provide. There are also certain tax deductible ways to save for retirement available to the "self employed". Your total tax liability could actually be less by treating yourself as a contractor. The downside is that your "customer", or "employer" doesn't pay half of your SS tax. Your "employer" may have already taken this into consideration when your compensation level was determined. Therefore if you decide that you want to become an "employee" the compensation may be less than it is as a contractor. In other words, if farmer "A" decides that he can afford $20 an hour for his tractor to be driven, he can pay a "contractor" $20 an hour or he can pay an "employee" $15 and reserve $5 an hour for himself to pay the required taxes and paperwork expense of having an employee.
I wouldn't think that you would want to involve any three letter agencies in your negotiations with anyone that you intend to have a positive relationship with in the future. I would also imagine that, coffee shops being what they are, you might find future employment or contracting opportunities somewhat restricted if that course of action were to be taken. | |
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Employee Compensation
