From: furballs@sequent.com
Subject: Re: Becoming a software contractor
Originator: furballs@crg8.sequent.com
Organization:  Sequent Computer Systems, Inc.
Distribution: usa
Date: Thu, 16 Apr 92 19:47:10 GMT

In article <1992Apr16.134720.10533@rsd0.rsd.dl.nec.com> dave@rsd.dl.nec.com (Dave Rogers) writes:
>In article <1992Apr16.054412.27033@leland.Stanford.EDU>, richwing@leland.Stanford.EDU (Rich Wingerter) writes:
>|> My acid test is to insist that I be treated as a subcontractor: that is, I will
>|> only work on a 1099 basis with them or the ultimate client.  I've never had a
>|> job shop call me back after I told them this.
>|> 
>|> 
>|> --Rich Wingerter
>
>The reason they never call you back is that Paragraph 1706 of the Tax
>Code says they *must* treat you as an employee.  Also they really don't
>need you because there are just too many folks willing to work as an
>employee (with or without benifits) thru a job shop for the higher wages
>they can get than as a direct employee.  And finally, why in the world
>do you think the job shop wants to give you their client, never to make
>another dime off of them.
>
>BTW if a job shop is paying you on a 1099 basis they are in violation of
>the tax code paragraph 1706.  The IRS is getting to folks around here
>that have been operating that way.  In one instance the "independent
>contractor" was declared to have been an employee of the client and all
>of his "business expenses" were disallowed for several years. 
>
>I don't like 1706 anymore than anyone else but until it gets changed, it
>is the law and we have to live with it.  The IRS is getting very good at
>finding violators of the tax laws too. 
>
>===============================================================================
>Dave Rogers                    				       
>M & R Software, Inc.
>Internet:   dave@rsd.dl.nec.com
>On contract to: NEC America, Radio Software Dept
>
>Don't take life too seriously; you're not going to get out of it alive anyway.
>

I agree. 

I am in, and have been in the situation where I have taken job shop
assignments as well as independant contracts. I have never had a
problem with the IRS, or the jobs shops because I have treated them
as the separate entities they are under the law.

Whenever I am contacted by a job shop with an assignment I let them
know right up front that I work as an independant contractor and as
such will not always be available to do certain things, or I might
have to decline certain assignments, due to possible conflict of
intrest with a current running client. They appreciate the honesty
since they now know what their getting into and will not get caught
by surprise later on.

I do not think it is unreasonable to occasionally supplement one's
income by taking an assignment. This has kept food on my table
during hard times, because many of my skills are very specific. I
have also found that it has given me the opportunity to make
contact and meet many people I would not otherwise have met. This
eventually leads to more contracts down the road. 

If people want to work strictly as an independant, then that is their
choice, but there is alot to be gained by occasionally working both
sides of the fence. Being pious in one viewpoint or another does
not help anyone, nor does it solve problems.


Xref: sparky misc.jobs.contract:1472 misc.jobs.offered:5472