-I'm not a lawyer. You need to verify your circumstances to your state and local laws, etc.
It is highly likely that the person hiring you must carry a liability and workman's comp policy. You might be covered under that, but ONLY as a stop gap line of risk protection for the public (client). Get your own coverage.
When your "employer" issues the 1099, they will be officially flagging themselves and you to the irs for tax implications. Often times, when the insurance company audits their clients for their general liability and workers comp liability..they ask for a list of 1099s paid out. This can trigger higher premiums on those monies paid, for the policy holder when the 1099 entity doesn't have their own coverage. Most businesses require you to therefore carry your own policy, and because it is simply often the law.
Often times you need to pay for multiple months ahead to initiate a liability policy, but can get unused premiums back if canceled earlier (ask your insurance agent).
Get a policy quoted from a few places, and make sure to tell them all your doing the same type of work...so you compare apples to apples.
Yes, ask for more money from anyone hiring you.
Another route is to start an LLC..and reduce the risk of being classified as an employee. I say reduce, because laws vary.
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It is highly likely that the person hiring you must carry a liability and workman's comp policy. You might be covered under that, but ONLY as a stop gap line of risk protection for the public (client). Get your own coverage.
When your "employer" issues the 1099, they will be officially flagging themselves and you to the irs for tax implications. Often times, when the insurance company audits their clients for their general liability and workers comp liability..they ask for a list of 1099s paid out. This can trigger higher premiums on those monies paid, for the policy holder when the 1099 entity doesn't have their own coverage. Most businesses require you to therefore carry your own policy, and because it is simply often the law.
Often times you need to pay for multiple months ahead to initiate a liability policy, but can get unused premiums back if canceled earlier (ask your insurance agent).
Get a policy quoted from a few places, and make sure to tell them all your doing the same type of work...so you compare apples to apples.
Yes, ask for more money from anyone hiring you.
Another route is to start an LLC..and reduce the risk of being classified as an employee. I say reduce, because laws vary.
Sent from my SM-S908U using Tapatalk
