Accounting, Payroll & Pension Issues/Working as a contractor

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Expert: - 1/25/2008


Question
I am receiving SS and am over 65.  I know I can make up to a certain amount of money without being penalized on my SS but can I work as a contractor for, say, a winery as their bookkeeper and not have to have any taxes taken out?  Can they issue me a 1099 at the end of the year and then I pay my own taxes?

Answer
You can start your own Sole Proprietorship bookkeeping business and contract out to employers as a contract service.

You still must keep track of your monthly amounts for the Social Security department and cannot go over their monthly guidelines on income.

You would need to send in Quarterly statements to the government with self employment taxes. All sole proprietors need to do this. The amount of tax is usually larger for the quarterly self employment taxes than what is taken out for payroll because it is a flat percentage.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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