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Yeah if you think of it from the perspective of the federal IRS I bet they are getting nervous about so much of the economy going freelance.As an employee Im a
by shams93 11y ago
Yeah if you think of it from the perspective of the federal IRS I bet they are getting nervous about so much of the economy going freelance.As an employee Im a sitting duck for the tax man, as a contractor with my own business my income is far less preductabke however the IRS inevitably and legally gets a much smaller piece of my pie.
- asift 11y agoHow do they legally get less of your money? Unless you are engaging in some type of tax fraud, this really isn't true.
- gozur88 11y agoI think he's assuming the government will have a much harder time proving undeclared income. Probably not true in Uber's case, but contractors are pretty notorious for giving generous cash discounts.
- dangrossman 11y agoFor the same job making the same income, you'll typically pay more taxes as a contractor than as an employee. You'll pay 100% of your SS/medicare taxes via the self-employment tax, where previously your employer was paying 50% of it for you. The income tax brackets are the same. You can deduct business expenses, but so could your employer, so the IRS isn't missing out on anything.
- 15155 11y agoSure, but it's substantially more expensive to administer and enforce tax on a company than an individual filing a simple 1040. The withholdings system exists to make it easier to collect.