Huge happenings!

"Jake - Has Bad Luck So You Don't Have To" (murdersofa) 02/26/2015 at 13:49 • Filed to: None

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I'm going on today as an independent contractor for the dealership I bought my Civic from! I'll be making just $8 an hour doing easy work to take the load off of the main mechanics (polishing headlights, changing oil, replacing busted radios with cheap aftermarket head units, etc.) but hey, it's income! Will definitely help me meet my goal of having a new engine in the Civic in time for the second autocross of the year. I'm going to be an 'independent contractor' for a couple weeks as a trial period before officially getting on payroll, but it seems pretty promising. I am excite.

ttyymmnn > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 13:52

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Beers are on Jake! Congrats.

mcseanerson > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 13:52

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Hope it turns out well. That rate as an independent contractor works out to less than minimum wage after taxes though. If they try to keep you independent contractor you should negotiating a fee based on each job.

JQJ213- Now With An Extra Cylinder! > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 13:53

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That sounds quite fun honestly!

However I'm surprised how little you will be making... Hell I make $8.75 bagging groceries

McMike > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 13:56

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Congrats!

505Turbeaux > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 13:57

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you need to be making more than 8 an hour man! Regardless, congrats and have fun!

blacktruck18 > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:01

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Congrats

davedave1111 > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:02

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"I'm going to be an 'independent contractor' for a couple weeks as a trial period before officially getting on payroll"

Not to be a wet blanket, but that's a massive red flag. Unless they're paying you cash, no taxes, keep it quiet, in which case it's a different kind of red flag, but probably OK if you're OK with it.

Bear in mind, though, that working there as a contractor you won't have any of the normal protections afforded by employment law. And you need to get it down clearly in writing that you are not accepting liable for any accidental damage you do, because while I'd expect employees to be covered by the employer's liability coverage, that often doesn't extend to outside contractors.

All of this varies from jurisdiction to jurisdiction, but it's important to make sure you know what's what. It's possible the people you're working for just haven't thought of it, but it's also possible they're trying to screw you over.

Tohru > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:08

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congrats on finding a career that lets you get paid to plastidip cars

Jake - Has Bad Luck So You Don't Have To > davedave1111 02/26/2015 at 14:21

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It's just a check every Tuesday, no paperwork, for the time being so they can evaluate if I'm worth keeping on, then in a couple weeks it will hopefully become official.

Jake - Has Bad Luck So You Don't Have To > 505Turbeaux 02/26/2015 at 14:22

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Hopefully it will go up after the trail period. Either way, it's more than I'm making at my current job ($10/hr but far fewer/irregular hours)

Jake - Has Bad Luck So You Don't Have To > JQJ213- Now With An Extra Cylinder! 02/26/2015 at 14:22

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Eh, it's a second job, super easy work, and it's very likely to go up.

jkm7680 > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:25

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Woo congrats!

Mattbob > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:27

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congratulations! Sounds promising. Dolla dolla bills yo

Jake - Has Bad Luck So You Don't Have To > Mattbob 02/26/2015 at 14:29

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thebigbossyboss > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:32

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Great news man!

Mattbob > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:36

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they could still 1099 you if it is a check and not cash. You will have to pay taxes on it.

davedave1111 > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 14:47

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First up, a cheque is paperwork.

More to the point, what reason is there not to put you on their payroll system for the trial period? I'm not specifically familiar with the employment laws where you are, but I'd be very surprised if there's anything which stops them doing so. In which case the question you ought to be asking is why they're doing it, and who loses out as a result.

It's possible, even probable, that by not making you an employee they avoid any liability for damage you do. Even if they accept that, their insurance probably doesn't cover it.

You should go and read up on the differences between being an employee and being a contractor in whatever jurisdiction you're in. There are good reasons contractors normally get paid significantly more than employees, and the main one is that they accept liability for everything from accidental damage to their own health.

Hey, y'all, watch this! > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 16:40

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So, there's actually rules governing who can and cannot count as a contractor, and who counts as an employee. The IRS breaks it down here: http://www.irs.gov/Businesses/Sma…

This sounds pretty sketch, honestly. Companies that try to miscategorize employees as contractors are usually doing it to get out of paying payroll taxes, but it also cuts you out from being eligible for any benefits, it might effect you being covered by their liability insurance, and you wouldn't be eligible for things like worker's comp. $8 an hour isn't worth getting screwed over for.

Ferrero1911 > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 17:38

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If you're getting a check on a 1099, which is what it sounds like, you will have to pay the employer's part of the payroll taxes in addition to what they would normally take out. In addition to the liability issues that Dave mentioned, you will also be making less than if you are paid properly through a w-2. I can't think of any place in which you would qualify as an independent contractor based on your description of the job.

Vicente Esteve > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 18:06

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Pardon my ignorance but, what exactly is an independent contractor?

brianbrannon > Jake - Has Bad Luck So You Don't Have To 02/26/2015 at 19:11

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Seems super shady to me, (flat rate mechanic for 14 years).

Contractors have contracts...

RustedSprinter > ttyymmnn 02/26/2015 at 20:18

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Make it rain! WOOO!

Jake - Has Bad Luck So You Don't Have To > Vicente Esteve 02/27/2015 at 01:30

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A term generally misused (as in this case) to mean "someone we pay to do stuff that isn't on our official payroll nor legally employed by us"

Old-Busted-Hotness > Jake - Has Bad Luck So You Don't Have To 02/27/2015 at 08:01

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A term that means "someone who has to pay his own Social Security and self-employment taxes." Your fancy $8/hr will be closer to 4. Get on the payroll ASAP.