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Employee wants to become independent contractor?


I have a great job in North Carolina. I love my job.

Unfortunately, I had some family circumstances that have required me to move home to Texas. The company I work for has been great in letting me work from TX. However, I don't know how long this can last? It seems too good to be true.

My job lends itself well to working at home, and I think I've shown them that I can be as or more productive than when I was working in the office.

My question: If I wanted to approach them about becoming an independent contractor, what selling points can I offer them? I'm sure it would save them money and would actually allow me to do more work for them.

What would be they're bottom line savings as far as taxes, insurance, etc. goes? How can I pitch the idea so that they get the same service from me with less money out of their pocket and more money in mine.

Any ideas for a proposal would be great!

Your employer will save in Social Security taxes, insurance such as workers comp, and any other benefits you may have received.
You benefit by getting to deduct expenses to run your business such as your computer modem/dial up service, supplies etc.
Other answers are correct in that the IRS determines your status. You may want to search irs.gov - independent contractor.
If your employer is willing to keep you as an employee - it should not matter to you, except for the state taxes.

Neither you nor your employer determine your self employment status, the IRS does.

Think of your own bottom line and your expenses in picking up the entire tax liability if SE.

No payroll taxes
No social security payments
No health benefits to pay
No vacation pay
No holidays

But, if you only work for them and follow their instructions, you are an employee and can't be made a contractor.

Do a business proposal type or a resume type paper. or just take short notes of everything you do.. bu tnot in detail because they will get someone else to do it.

good luck

I would say selling points would definitely be that they would not have to pay for insurance also workmans compensation insurance. You could also point out the cost of long distance and or any faxing, supplies or other expenses they pay for now that you would have to supply your self. I would also think that it could appeal to them in the fact that if they didnt need to use you all the time that they wouldnt have to pay for your services all the time, only for time that they need you.

The IRS will determine your status.

The company seems to like you obviously. Becoming independant means they dont need to offer you health insurance because your independant, and you have to file your own taxes. Howeverl things like your computer, supplies to do the job ect maybe tax deductable.
To find out what can be tax deductable go to http://www.nolo.com/article.cfm/objectID...
You'lll need to file for a usines licence seeing as you'll be running a business from your home. Most people find this a better way to work because yourworking in the envirnment your most comfortable in.

Good Luck!

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