unemployment info as a 1099 contractor?

[Mike H]

How many expenses do you pay that you deduct vs reimbursement?

-mini

Taxes- you'll pay a LOT more as a corporation than as an individual- however as a corporation, you MAY pay less income tax because you have more ways to adjust your taxable income. Some taxes you'll still pay even if your corporation isn't profitable (unemployment taxes, and, if you're paying yourself as an employee, both the employer's and employee's share of social security & medicare taxes, as well as state & federal income taxes)

 

[Patrick]

You don't have to pay into the unemployment fund if you are a single member LLC (as many consultants are), however, that also automatically disqualifies you from receiving unemployment should you "lay yourself off."

There are benefits of forming an LLC, the main one being that you can often have less tax liability by virtue of taking advantage of write offs and depreciating assets that you could not do as a personal independent contractor. Being 1099'd is not a great situation, as you're automatically taxed on it.

 

[sixoneseven]

well fortunately i am going back to work on sunday. i was just thinking (albeit a bit late) that i probably could have gotten benefits all summer.

I'm starting the mapping season on Monday. I'll be at the hotel tomorrow night however. Maybe I'll see you on the road.

Anyways, I know several other pilots working for LAI do infact go on unemployment over the off season. Maybe it varies from company to company?

 

[TXaviator]

I'm starting the mapping season on Monday. I'll be at the hotel tomorrow night however. Maybe I'll see you on the road.

Anyways, I know several other pilots working for LAI do infact go on unemployment over the off season. Maybe it varies from company to company?

Are you with LAI? You paid as an employee (W-2) or contractor (1099) ?

Probably cross paths with you at some point. AA is heading to DAB tommorrow, and probably hitting the road mid-week sometime.

Sucks getting started this late in the year but its good to get back to work.

 

[roundout]

I would just call the TWC. They have been helpful whenever I've called them. You might want to go in now and try to establish a relationship with a rep at your local branch.

 

[CoffeeIcePapers]

There are benefits of forming an LLC, the main one being that you can often have less tax liability by virtue of taking advantage of write offs and depreciating assets that you could not do as a personal independent contractor. Being 1099'd is not a great situation, as you're automatically taxed on it.

I don't think that is correct. When you are a 1099, you are a self employed contractor and operating as a Sole Proprietor. You still are allowed to write off expenses, depreciation of assets, etc..

The main benefit of having an LLC is that it separates your assets from the business assets, in case of a lawsuit, it protects your personal assets. Whereas, a sole prop's assets are combined.

 

[Patrick]

I don't think that is correct. When you are a 1099, you are a self employed contractor and operating as a Sole Proprietor. You still are allowed to write off expenses, depreciation of assets, etc..

The main benefit of having an LLC is that it separates your assets from the business assets, in case of a lawsuit, it protects your personal assets. Whereas, a sole prop's assets are combined.

You have a bit more flexibility to account for things under an LLC than you do as a sole proprietor. The largest benefit, however, is the "limited liability" feature of separating personal and business assets, and more importantly, liability.