Quit the Independent contractor job?

iVillage Member
Registered: 03-27-2003
Quit the Independent contractor job?
3
Sun, 01-18-2009 - 9:45pm

I wrote earlier how my husband has a second job and is paid as an independent contractor.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Mon, 01-19-2009 - 11:11am

Hi Dana - DH was in independent contractor for years when we were first together. I would take 1/3 of every check he ever received and put it into savings so that I could pay the quarterly taxes on that money. Once we admitted to ourselves that what he was really making was 1/3 less than what arrived by check in the mail, we did much, much better with taxes.

In the end, though, the sporadic payments and inability to count on people paying bills on time helped him make the decision to quit the independent gig and go to work for an employer.

All my best,
Danni
cl-phocid, Debt Support Group



All my best,
Danni

Avatar for meandmypea
iVillage Member
Registered: 03-27-2003
Mon, 01-19-2009 - 11:29am

I'm an independent contractor, and I do what Danni suggested - I take 15% off each paycheck and put it right in my ING account the day I get paid. That way it builds up interest throughout the year. Better to have the interest working for you than for the government.

You're not really "losing" money, so try not to think of it in that regard. When you work for an employer, your gross income is always higher than your net income. It's just that the employer takes out the money for taxes with each paycheck for you before you can miss it. As an independent contractor, you just have to act as your own employer and do it yourself. Once you get into that habit, it's not so bad.

My independent contract gig is what is helping us get out of this mess, so it's worth it to me. You just have to decide for yourself if it's more hassle than its worth.

Bridget




Bridget
iVillage Member
Registered: 03-27-2003
Mon, 01-19-2009 - 11:58am

Thanks for the insight.