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In order for the first set of "1-man companies" to pass IRS muster, as a rule they've got to have a set of characteristics like a degree of autonomy. The ones

by hga 13y ago

In order for the first set of "1-man companies" to pass IRS muster, as a rule they've got to have a set of characteristics like a degree of autonomy. The ones you listed sound like they could pass muster; compare to "typical" computer programmers like many on this site who work at one location, doing tasks directed by a manager, etc., and who don't (as of 1986-7). If the company doesn't want to make them regular employees, they have to go through a body shop. else the IRS may realize the game, and require the company to pay back W2 type taxes, interest and penalties, never-mind that the individuals have been playing their FICA taxes (both "shares") etc. I'm not sure this is a big problem. I'm particularly unsure what the problem would be with "hedge fund managers" (aside from our required Two Minute Hate). What major expenses do they have that can make a noticeable dent in their outsized incomes? Surely they're sufficiently big fish they don't get away with cheating on the FICA taxes? Etc. (I say this as the son of a serial small businessman, who's watched him thread the needle of the IRS's requirements for much of his life.)

dragontamer 13y ago
The door-to-door sales jobs I've seen are right on the edge. They may expect you to come in at certain times for "unpaied team meetings", there is an expectation to arrive at "nonmandatory training", etc. etc. Words that are used to prove to the IRS that they are running "independent contractors" while barely skidding the line. Does this look like an Independent Contracting gig to you? http://vectormarketing.com/ http://vectormarketing.com/ Anyway, the important bit is that "small businesses" are poorly classified in the USA. A lot of one-man shops are basically poorly-treated employees, skirting the law so that they can ignore certain taxes. Yes, there has been growth in "small businesses", but unless we get more data, there is no way to tell if small businesses are actually growing, or if companies are simply shedding employees for independent contractors to avoid payroll taxes.

by hga 13y ago

dragontamer 13y ago

The door-to-door sales jobs I've seen are right on the edge. They may expect you to come in at certain times for "unpaied team meetings", there is an expectation to arrive at "nonmandatory training", etc. etc. Words that are used to prove to the IRS that they are running "independent contractors" while barely skidding the line. Does this look like an Independent Contracting gig to you? http://vectormarketing.com/ http://vectormarketing.com/ Anyway, the important bit is that "small businesses" are poorly classified in the USA. A lot of one-man shops are basically poorly-treated employees, skirting the law so that they can ignore certain taxes. Yes, there has been growth in "small businesses", but unless we get more data, there is no way to tell if small businesses are actually growing, or if companies are simply shedding employees for independent contractors to avoid payroll taxes.