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How do I protect myself as an independent contractor?

Here are some tips for protecting yourself if you elect to do contract work. Be sure youre properly classified. Beware of Scope Creep on the part of the employer. Be aware of your tax obligations. Protect your rights with solid contract documentation. Plan for your own benefits.

What rights do I have as a 1099 employee?

If you made more than $400, you need to file an annual tax return as an independent contractor. If you will owe more than $1,000 at the end of the year, you will also need to pay quarterly estimated taxes.

What are my rights as an independent contractor in Florida?

How much is the self employment tax for Florida? The Florida self employment tax is 15.3%, divided into two parts. The first 12.4% is for Social Security (old-age, survivors, and disability insurance) and the second 2.9% is for Medicare or hospital insurance.

What is the ABC test for independent contractors?

Independent contractors are not entitled to benefits from the company, such as health insurance or retirement, and are ineligible for unemployment benefits. Independent contractors are even exempt from employment discrimination laws governing wages and hours worked.

What is employee vs independent contractor analysis?

Unlike employees, contractors have invested in their own business, for example by paying their own expenses. Because of this, they have a financial stake in its success. Additionally, contractors payment terms can vary. Unlike salaried employees, contractors usually invoice for time and/or deliverables.