Is anyone familiar with being a contract employee in the Motorsports industry?

Question

I have been offered a position with a racing team as a fabricator. I have always worked as a W-2 employee in the past. Are there anythings I need to be aware of before I accept the job? I'll be a 1099 employee and expected to pay my own tax liability. Are there additional deductions I can take in this position? Thanks.

Answer 1

just like a sef painter or carpenter, or even a lawn maint man, you make sure you are the one that says how much it will cost him for your work,, you have to sit down and figure all of the cost it will be on you, and vise the amount of your payrole,you need to get all of this to geather in writting and contracks and have him sign it, ot the h**l with him, do not get sucked in  by him trying to save money out of your pocket..  plus whos paying for workmans comp?are you requirednto self insure?.. need to get the adding machene out, do not take a loss on this, most shops will hire a fabricator or what ever at regular sop pay, and all of the benafits sick pay, vactaion pay, i hate to say this , but sounds a like these guys are in it for a short kill...

Answer 2

If you keep regular hours and you only do work for one company be aware that the IRS has ruled contract employees to be regular employees under those conditions. The consequences of this ruling is more of a problem to the employer who is saving employment taxes but it will affect your tax liability also.

Check with your accountant fIrst but you should be able to depreciate your tools and equipment as well as the vehicle you use to get to the job site. Commuting costs can be written off as well.

You need to make quarterly tax payments to the irs that include income tax and self employment tax.

The safest thing to do would be to also do some part time work for someone else so you would receive more than one 1099.