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When we talk about "contractors" I'm presuming the tax term is the important differentiator here. Simply put, if you're a 1099 contractor or corp-to-corp (you a
by SavageBeast 6y ago
When we talk about "contractors" I'm presuming the tax term is the important differentiator here. Simply put, if you're a 1099 contractor or corp-to-corp (you are more or less your own employer but as a corp, not your self personally) then you are a value add service and you come complete with all the tools and licenses necessary to perform your function. You naturally write these expenses off as the cost of doing business and reduce your tax burden to some small degree. You charge the client for these items make no mistake, but you hide those charges by averaging them into your hourly bill rate.
Alternatively if you are a W2 "contractor" - the fake way of hiring a full time person through an intermediary agency and not giving them any benefits, well thats a different story. They may call you a "contractor" but you're actually a regular ole employee (you likely don't meet the IRS test for "contractor" in this case even). In this case you collect paychecks and pay out of your own pocket for absolutely no-thing. If you do buy anything you expense it back to your employer for full reimbursement.
Still yet different, a real 1099 "contractor" who works on a time+materials basis can very rightly bill hours AND ask for reimbursement on expenses directly related to performing the paid task. Just the same way that a plumber comes to your house and charges you both for his time and the materials/supplies he consumes to do your job.
So in short, its not uncommon at all but it depends on the terms of the "contract" engagement as to whether or not is applicable in a certain case. If it was negotiated up front then its all good - otherwise it may be looked upon less kindly as a surprise later.