A community of 30,000 US Transcriptionist serving Medical Transcription Industry


IC vs. statuatory..I feel hornswaggled - sunshine


Posted: Feb 11, 2012

I was doing my taxes yesterday and realized my new employer sent me an 1099 instead of a W2. When I looked at it, there was no Social Security or Medicare taxes taken out. I know when I was hired I was told I would be considered an IC. At my last job, I was an IC, but had those taxes taken out, so I assumed this would be the case again. I was atonished to find out my federal tax return went from me owing last year $178 to owing over $1000 this year because of it.

 

Shame on me for not paying closer attention. Do any of you get a 1099 and how do handle or save back for such a big expense come tax time? I believe I'm going to have to quit this job, as the tax burden is way too much for me to handle.

You put away 25% to 30% per paycheck - and pay quarterly taxes

[ In Reply To ..]
That is normal practice. I was an IC for years and if you are able to put 25%-30% away in a separate savings account, and then quarterly you pay that amount to the IRS and State, you will still get a refund.

I don't ever pay quarterly taxes nor do I put any money away - - sm

[ In Reply To ..]
Never in the 23 years I've been an IC with my own accounts. And I don't use a tax person - file all my own long-form taxes. The name of the game is being verrrrrry creative with your write-offs. You'd be surprised at what you can write off. And yes, I've been audited and passed. It's your money, use the Tax Code to your benefit to keep what you earn.

And to those who are ICs and get refunds: The IRS Tax Code states that if you get a refund, you DO NOT have to pay quarterly taxes.

Works for you - sm

[ In Reply To ..]
If you are successful with your method, that is fine, but not everyone as your ability to handle the complexities of the tax code. That kind of "creativity" might not be something they excel at.

You are correct that you do not have to send in payments quarterly if you get a refund., but we were talking about someone who had to pay more on top of what had been withheld. It was someone who had NO WITHOLDING.

If the employer does not withhold, nothing gets paid during the yer. You cannot get a refund if nothing was paid in the first place.

The tax code provides penalties for failure to pay enough on a quarterly basis, too.

Seeing the situation accurately - sm

[ In Reply To ..]
You are missing something here. The fact that your previous employer withheld your taxes does not mean he used HIS money to pay them. He withheld YOUR money to pay them.

Last year, your employer paid your taxes for you using your money, on a quarterly basis, so that at the end of the year you only had to pay a small amount that had not been withheld.

This year, you are having to pay the entire amount at the end of the year because, essentially, you failed to pay them when you were supposed to each quarter.

This is not the fault of the job. Quitting this job is not goin to help any. You are still paying the same taxes.

The fact that you did not know this tells me that you are doing your taxes yourself instead of using an accountant. You are probably making errors or missing other things that could benefit you, like business use of the home. I was shocked by how much my accountant saved. I even got adjustments on prior years after she redid them.

You need to find an accountant who understands ICs and statutory employees, if that is what you are. I don't mean HR Block or some other seasonal tax preparer, either. I mean an accountant. As part of their service, they will set up your quarterly payments, estimating what you will need to pay, and telling you how to do it. They will also asvis on records you need to keep and will stand by you in the event of an audit. The cost is not that much. I pay about 200 a year and it is well worth it.

seeing the situation accurately - jan2

[ In Reply To ..]
H&R Block took care of my taxes during those years that I was an IC and understood completely what IC-ing was all about, explained all the deductions, e.g. portion of the home for office, etc., and the rules on paying your taxes.

H&R Block here refused to do IC or statutory employee - nm

[ In Reply To ..]
nm


Similar Messages:


Statuatory Employee
Apr 27, 2010

Curious to know if anyone on this board is a statuatory employee with the company they are working for and outside of the company paying your SS tax and FWT, do you get any type of benefit, i.e., PTO, health, etc. Is it strictly just for tax purposes? Would you get a W2? Do you have to adhere to a schedule? I was a "stat" employee many years ago, when I first started and don't remember if it was just for the tax thing or if I got any benefit/s also. Thanks for any info. ...


Man, I Feel For New MTs...
Aug 07, 2010

I was just looking at the Word Help board - I can't imagine working at home by myself, having no one to ask for help.  When I first started, you could turn to the person next to you and get some help.  They've really been thrown to the wolves.  Good luck, all!! ...


Feel The Same Way
Sep 10, 2010

as the poster below.  I think the lag in our computers now with the 6.1 is either because the ILPs are "observing" while we are typing or there is a spyware included to watch our keystrokes and screens.  Getting paranoid. ...


Does Anyone Else Feel This Way? (sm)
Aug 26, 2011

Today is payday. Never knowing what it will be until I check my bank account, I get this horrible feeling in the pit of my stomach while logging on to my bank's website. It's sort of like butterflies, but not as pleasant a feeling!  This morning, I took a look at the last five deposits. Most are within 20 or 30 dollars, but they all are getting progressively smaller, smaller, smaller. Compared to two years ago, it's literally half of what I was making. Egads! Soon I will be p ...


Does Anyone Else Feel Like This?
Jan 11, 2012

I know a lot of you work for companies right now that do not have enough work and I can truly empathize with you, have been in that boat as well. But the company I work for begs us to do overtime every single solitary weekend, aka Friday, Saturday and Sunday. I have been in this field for almost 30 years and quite honestly I am burnt out. I put in my 40 hours a week and feel the rest of my life is my time. I have neck problems and back problems as well, but still manage to do my best and am also ...


I Just Have To Say That I Feel Sorry For Those MTs
Apr 22, 2012

Who are actually listening and believing this BS that WMJ is spewing out. She or he does NOT have your best interest at heart. If you choose to do the sick out I can guarantee that you will not have a job when you try to log back in on the 2nd. We work in an at will employment job. They can lock you out and not even give you a reason for letting you go. We do not have a union which would protect you in a strike situation though I for one still would not want to be in a union because they ar ...


Ever Feel Like
Aug 14, 2012

The so called random dictation is designed to slow you down, makes me mad when I just want to get the work done without constanting stopping and starting, rearranging the formats, etc.    ...


Do You Ever Feel Like
Oct 18, 2012

a note and say, "Hey, the reason you have having to s-p-e-l-l these simple words now is because your chart notes are being done in India."   All part of the plot to push for off-shoring the work because there are "so few qualified US MTs."  ...


To MTs Over 50 Who Feel They Won't Be Able
Dec 03, 2012

they'd be too old to start at the bottom and no one will hire them, consider getting your real estate license.  It only takes 2 months, and this happens to be an industry where it seems age actually is of benefit!  Trust me, I've done it and now an apartment manager in a small complex where I pay no rent and no utilities.  Try it if interested, you might like it :) ...


Ever Feel Like You Can Never Do Anything Right.
Dec 22, 2012

I made 99.125 on my audit this month.  Why do i feel this company still considers this failing. One thing is for sure, I cannolt wait until I get another job. ...


Anyone Feel Like Me?
Aug 20, 2013

I am so sick and tired of this work, this company, and really hate sitting down here every day for the past 20 years.  It gets harder each day with every new rule, policy or threat we receive.  Whether there is work or not, I feel the same way - I am so burned out on this garbage.  I am still far from retirement and really trying to find a way to refocus myself to concentrate on this mind-numbing drivel that ASR puts out.  I am so sick and tired of putting in commas, taking o ...


How Are You All Going To Feel
Dec 03, 2013

when fast food workers are making $10/hour? ...


Sometimes I Feel Like...........
Dec 11, 2013

one of those bears on a track in the carnival shooting games.  Shoot-ding-turn, shoot-ding-turn......... ...


How I Feel...
Apr 22, 2014

Today I could so easily throw my computer and reference books in a pile in the middle of my office, light a match, and walk away. ...


Anyone Else Feel This Way.....
Aug 29, 2014

I started my job at the high school cafeteria and believe it or not, love it.  Min wage never felt so good.  I'm still doing MT at night, but have been having a *forget this* attitude.  Plus, with the work load at my MTSO being so friggin' slow, it just depletes my motivation.  If we really didn't need the money, I would up and quit.  {{sigh}} ...


What Must That Feel Like?
Nov 21, 2014

I'm going to preface this by asking that there be NO judgment ... no snarky "get out of the field then" or "don't let the door hitcha in the arse" comments.  I'm just having one of "those" days where I feel absolutely horrible about the work that I do.  Tomorrow, I will be fine again and we all have these days from time to time.  I'm getting ALL crappy reports today.  I can't seem to understand ANY of the dictation I've gotten, I've barely ...


Aah, I Feel For It Again
Feb 24, 2015

The old bait and switch .  Ask you to work OT and then give you the worst of the worst.  Fool me once, shame on you.  Fool me twice, shame on me.  I sure could use the extra money but don't want to go through the "crap" to earn it. ...


I Feel REALLY Dumb Asking This But
Nov 15, 2009

I have a doc describing a cough and I can not come up with the correct spelling on the end of the word.  It is a rattley cough, as in rattle-like sounding cough.  It is not rattling, but rattle-e.  Some days, the brain is just not functioning.  Duh!  Sorry. ...


Why Do I Feel More And More Incompetent?
Nov 24, 2009

I have 20+ years' experience as an MT, 8 more years as a nurse before that, consider myself a reasonably intelligent person, yet I feel like I'm struggling more and more just to do this job.  I had the most horrific dictators today with the worst ASR, one after the other.  It felt like the weight of the world was on my shoulders as I slumped in my chair trying to get the jobs done.  I just could not understand those Indian doctors.  Stutterers.  Clanging backgr ...


I Feel Sicker
Jan 18, 2010

before I went into my PCP's office today.  The NP who saw me walked in with her laptop and proceeded to enter everything in using drop-down menus and shortcut phrases, saying how GREAT it is to not have to dictate any more.  She said the program wasn't perfect and didn't have every drop down thing she needed, but she could type in phrases herself whenever needed.  Said the docs are all on board and loving it:(:(:(  I guess this is what' ...


I Feel Like I Cannot Do Anything Correct
Jul 03, 2010

After 25 years all the sudden I feel like I cannot do anything right. MQ must be trying to get rid of experienced MTs. ...


How Some Docs Feel About EMR.........
Apr 03, 2010

Had an appt with my doctor; she was slowly typing as we talked.  I asked her how she liked typing her own records.  She said she hates it but has no choice as it is required now.  Apparently some companies are telling the hospitals that EMR is required by law.  That isn't exactly true, and the companies (such as MQ) do a lot of fibbing and twisting of the truth.  While it will be required that medical records be electronic....HOW they get there is where they are fib ...


Anyone New Feel Like They Were Just Abandoned?
Jun 17, 2010

Anyone new to MQ that feels like they were just thrown out and then forgotten?  I just started last week and other than the SR and docqscribe training they really don't tell much.  I was never even told how to clock in and out until a week into working and that was because I asked.  I am here because my old job, which I loved, was outsourced to MQ.  I did clinic notes for so long for the same doctor that I feel like I am just starting out and it is scary.   Any ...


MD-IT - This Is How I Feel Today
Aug 05, 2010

  Hi!  This is how I feel today.  Sometimes my account (not MD-IT) has so much work we are chasing our tail.  However, this week has been really slow so I am looking for a new full-time home and I'll stay with the old place part-time.  To that end,  any word on MD-IT?  I just would like to sit down at X o'clock and put in 7-8 hours and be done.  I really hate babysitting the computer for a dang job???!!!   In here three hours already and only have 200 lines  Thanks for hear ...


Does Anybody Else Feel This Way? Rant
Sep 27, 2010

I used to love transcription. I felt competent and like I was doing a service to patients by making their medical records into an understandible format. When I was working oftentimes I would be "in the zone" and time would pass by quickly. I felt proficient. After working for MedQuist for 6-odd years, I'm sick of them, sick of transcription in general. I dread going to work every day and yes  I am looking for another job but being over 50 and having done nothing but work at home in tr ...


Feel Like I Have Looked EVERYWHERE
Oct 19, 2010

Where to look now?  I feel like I have looked everywhere possible.  I applied to a place in Minnesota.  They had told me, "After we review all of your tests (which I passed) and your application, along with your online interview, you will be contacted."  I have not yet been contacted, and that was on 9/22.  I have emailed them and everything, and they have not responded.  I was thinking about calling them, but should I even bother? Also, I had advice from my mother ...


Ever Feel Like They Just Want You To Fail?
Nov 19, 2010

It just seems like we cannot win with this company. Between the 5% QA, bottom of the barrel dictators, and unrealistic expectations I just want to pull my hair out. ...


DSG - How You All Feel About The Company?
Feb 25, 2011

Any DSG'ers out there? Just curious how you all feel about the company. I know that the whole MT field is going down the tubes, but if you work there, are you about as happy as one could be in this field these days? Do you ever wonder if the grass is greener somewhere else? ...


Feel Like I Should Know This--neurosurgery
Oct 14, 2011

Left s/l *CARE-dee-oh-nal* craniotomy for an anterior skull base approach for microsurgical resection of a complex 2-cm suprasellar mass. Thanks in advance. ...


I Feel Cheated
Dec 10, 2011

I'm on a huge account with a huge company (the one that is taking over the planet right now).  Most of the time I get editing and I have to really scramble to make enough, because of course they pay less than half what I used to get for straight transcription.   But this morning I got lucky and pulled up a discharge that was straight transcription that was 21 minutes long.  I finished the whole thing and tried to upload it.  EditScript gave me a message that it was not ...