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Independent Contractor Unemployment

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Independent Contractor Unemployment

What are the costs of independent contractor unemployment? According to a recent report by the Associated General Contractors of America, the total cost to the economy from contractor unemployment in 2012 was $18.9 billion. If you are an independent contractor, it is important to know the cost of independent contractor unemployment.

In the United States, only one third of all people who want jobs can find them. The remaining two thirds are unemployed, and have been for a long time. The unemployment rate is currently 7.2%, which is the lowest it’s been in the past 50 years.

Home » Bookkeeping » Independent Contractor Unemployment

Nov 5, 2020
Bookkeeping by Adam Hill

They receive pay in accord with the terms of their contract and get a 1099 form to report income on their tax return. The employer withholds income taxes from the employee’s paycheck and has a significant degree of control over the employee’s work. Definitely, if you don’t get compensated for your extra expenses as a contractor (such as health insurance), then contracting is worse. But, I’ve found that employers generally are willing to pay contractors more than employees in recognition of those extra expenses.

How does w2 contract work?

Contract – Independent means they hire you directly, as a 1099 which is the designation of the tax code of you you report your income. Contract – W2 means they hire you directly, as W2. W2’s are typically full time employees with benefits, but could be a contractor.

For this reason, a contractor shouldn’t accept the same top-line pay as the employee. Typically, a contractor receives his full pay without any taxes withheld from his paycheck. Instead of receiving a W-2, your employer provides you with Form 1099 showing your gross annual salary.

In order to collect unemployment benefits, an individual must have been employed by an employer who was paying into unemployment insurance. That is, the person must have been an actual employee of someone (a “W2 employee” or “W2 worker”). However, sinceindependent contractors are not employees and no one pays unemployment insurance for them, it is not likely that an independent contractor will be eligible for unemployment benefits.

You must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to employees. You do not usually withhold taxes for a contractor or pay toward other benefits; they take care of that themselves. Employee misclassification happens when workers are mislabeled as independent contractors, rather than employees.

If you misclassify employees, you aren’t paying unemployment and other taxes on your workers when you really should be. And you aren’t covering them with workers’ comp and unemployment insurance when you should be. For example, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee.

And driving has only become more prevalent in the past three years. Not the happiest news for those not being reimbursed or being under-reimbursed for the business use of their personal vehicles. Many employers don’t realize the burden this imposed on their employees.

Some independent contractors may also have to pay state sales taxes, depending on the product they are producing. In 2017, President Trump signed the Tax Cuts and Jobs Act into law. This law, which impacted taxes filed in 2019 for 2018, is still in effect today. One of the many impacts this law had on employees was removing tax deductions for unreimbursed business mileage and other itemized expense deductions.

As a self-employed person, you are responsible for paying 15.3 percent self-employment tax, which is your contribution to Medicare and Social Security tax. Regular employees also pay Medicare and Social Security tax, which amounts to 7.65 percent. The IRS advises the self-employed to pay the FICA and income taxes throughout the year, thereby reducing the tax liability when it’s time to file taxes. If you’re an independent contractor, freelancer or business owner, you have a unique tax situation that can make tax time a little more difficult compared to your counterparts who are employees. Understanding how much you’ll pay in taxes as an independent contractor can be confusing.

As a rule of thumb, an employee costs a company about 120 – 150% of the employee’s salary. For example, an employee with a salary of $100k actually costs the company about $120k – $150k, after you consider things like SS taxes, workers comp insurance, and benefits.

A 1099-MISC, for instance, is typically used to report payments made to independent contractors (who cover their own employment taxes). A W-2 form, on the other hand, is used for employees (whose employer withholds payroll taxes from their earnings). Except for federal unemployment benefits, both self-employed individuals and employees pay the same taxes – federal income taxes and taxes for Social Security and Medicare.

That being said, you’re limited in what business expenses you’re able to deduct from your taxes and how much money you can defer to your 401(k). While the traditional employment route may be more convenient, you’re likely able to make a larger paycheck in one of the following contractor positions. Unemployment benefits are designed for employees whose employers pay state and federal unemployment taxes to fund the unemployment system. Ordinarily, when you’re an independent contractor, you can’t collect unemployment if you’re out of work. Neither independent contractors, nor their clients or customers, pay state or federal unemployment taxes.

Independent contractors have some easy-to-identify benefits for the bottom line. Because you aren’t paying employment taxes and providing benefits for them, contractors can often cost less than full-time employees.

However, as sole proprietors, independent contractors do not necessarily pay taxes on their gross earnings. Applicable business expenses can reduce their overall tax obligation. The difference between gross earnings and business expenses is the net income, the amount on which taxes are due. As of 2019 independent contractors pay 12.4% in Social Security contributions and 2.9% in Medicare payments on the first $132,900 of their net income, plus 2.9% on their net income in excess of $132,900.

  • Since your level of oversight over independent contractors is relatively low, your level of financial and legal responsibility is low, as well.
  • And, as their own business owners, 1099 workers aren’t eligible for the benefits you might offer your W2 employees, such as health insurance, paid time off, and overtime.

We’ve broken down what independent contractors can expect to pay in taxes this year and included some helpful tips to assist you in getting the most money possible from your deductions and credits. An independent contractor who becomes unable to find work is not eligible for unemployment benefits.

Becoming a W2 Contractor

Since your level of oversight over independent contractors is relatively low, your level of financial and legal responsibility is low, as well. 1099 workers pay both employee and employer self-employment taxes—so, if you choose to hire an independent contractor, your business doesn’t need to pay payroll taxes. And, as their own business owners, 1099 workers aren’t eligible for the benefits you might offer your W2 employees, such as health insurance, paid time off, and overtime. As an independent contractor, you’ll usually make more money than if you were an employee. Independent contractors also may deduct more business expenses than employees typically can claim.

Income up to $118,500 is subject to Social Security tax and all your income is subject to Medicare taxes. However, you don’t have to pay for benefits or Social Security, Medicare, or unemployment taxes when you hire a contractor. Because of that, many businesses find independent contractors to be more cost efficient. Generally, you have more control over the work that an employee does than you do with a contractor.

By law, employees are guaranteed at least minimum wage (set by both federal and state laws) for the time they’ve worked on a regular and ongoing basis. Companies withhold their W2 workers’ Social Security and Medicare taxes, and pay employer payroll taxes. In most cases, a company can let an employee go for poor performance or any other valid, non-discriminatory reason. An independent contractor, on the other hand, works and receives pay according to the terms of a signed contract between the parties. Because of the issues that can arise around whether a worker is an employee or a contractor, some skittish employers won’t hire contractors who use their social security numbers as taxpayer IDs.

While this change did not impact independent contractors, it’s still a lot of money. To put it into perspective, taxpayers deducted $35 billion dollars in unreimbursed business mileage in 2016.

Deciding between contracting and full time employment is no easy task, especially with ongoing changes to employment law. Reach out to a KORE1 team member today to discuss your options and which is the best fit for you.

What does contract on w2 mean?

Becoming a W2 Contractor Working as a W2 contractor is a comparable setup to that of a full-time employee, except on a temporary, contract basis. When it comes to filing taxes, your employer will withhold income taxes on your behalf, along with withholding and paying Social Security and Medicare.

As such, they must be ready to compete on the global market for work. Being an independent contractor has downsides, as they have no access to unemployment insurance or workers’ compensationpayments. As a W2 employee, your employer pays half of your Social Security and Medicare, which independent contractors are 100% responsible for. You’re also more likely to be eligible for a variety of benefits from your employer, such as healthcare, paid time off, and 401(k) options.

You don’t usually have to withhold or pay taxes on payments to an independent contractor. If you feel like your own job falls somewhere between contractor and employee, you’re not alone. The Treasury Department estimates that employers nationwide misclassify millions of workers as independent contractors instead of employees, thus avoiding having to pay employment taxes. Many small business owners choose to work with independent contractors because of the perceived cost savings. 1099 and W2s are the different tax forms used to deduct payroll taxes on different types of employees.

How H-1B Visa Uncertainty Affects U.S. Employers, Job Seekers, and Consumers

Unlike employees, independent contractors are required to withhold their own federal, state, and local taxes. In contrast, independent contractors must provide benefits for themselves, including paying both the employee and employer portions of Social Security and Medicare payments, among other expenses. The independent contractor must still meet the payer’s quality standard and time frame while producing the product. Independent contractors often work for employers who are physically far removed from their location.{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”Are independent contractors entitled to unemployment benefits?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” No. Independent contractors are not entitled to unemployment benefits.”}},{“@type”:”Question”,”name”:”Can I receive unemployment if I’m self employed?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” If you are self employed, you may be eligible for unemployment benefits.”}},{“@type”:”Question”,”name”:”How does 1099 work affect unemployment?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:” 1099 workers are not eligible for unemployment benefits.”}}]}

Frequently Asked Questions

Are independent contractors entitled to unemployment benefits?

No. Independent contractors are not entitled to unemployment benefits.

Can I receive unemployment if I’m self employed?

If you are self employed, you may be eligible for unemployment benefits.

How does 1099 work affect unemployment?

1099 workers are not eligible for unemployment benefits.

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Enchanted Woods and Forest Slots: Exploring the Mystical Realm of Nature

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2 weeks ago

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November 23, 2023

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In the realm of online casino gaming, a genre taps into the enchanting allure of nature and woodland mysteries: Forest Slots and Enchanted Woods Slots. These slots transport players into the heart of lush forests, where mythical creatures, ancient trees, and hidden treasures await discovery – play it here.

In this article, we will delve into the captivating world of Forest Slots and Enchanted Woods Slots, exploring their captivating features, woodland themes, and their magical gaming experience.

Immersed in the Wonder of Nature with Forest Slots

Forest Slots and Enchanted Woods Slots represent a captivating subgenre within online slot games, drawing inspiration from forests’ lush beauty and mystical aura. They offer a fusion of natural aesthetics, woodland creatures, and the potential for substantial real-money rewards. These slots appeal to fans of nature and wildlife and players seeking an escape into a world of tranquility and enchantment.

Key Features of Forest Slots and Enchanted Woods Slots

Lush Woodland Aesthetics

The standout feature of Forest Slots and Enchanted Woods Slots is their ability to recreate the serene and mystical ambiance of the forest. These games often boast towering trees, moss-covered stones, and enchanting glades—the graphics and animations transport players to a world of natural wonders, creating an immersive gaming experience.

Iconic Forest Symbols

Forest Slots and Enchanted Woods Slots feature symbols emblematic of the woodland realm. Players can expect to encounter woodland creatures like deer and owls, ancient trees, magical toadstools, and the elusive fairies and sprites that inhabit these enchanted woods. These symbols add to the game’s visual allure and play a critical role in determining winning combinations and triggering bonus features.

Woodland Creatures and Mystical Beings

To enhance the forest experience, these slots often incorporate encounters with mythical creatures and mystical woodland beings. Players may interact with fairies, elves, unicorns, and other fantastical inhabitants of the enchanted woods. These interactions add an extra layer of enchantment and engagement to the gameplay, providing players with a sense of wonder and magic.

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Forest Magic Bonus Rounds

In Forest Slots and Enchanted Woods Slots, players often engage in bonus rounds that tap into the mystical energies of the forest. These may involve participating in magical ceremonies, uncovering hidden pathways, or seeking the blessings of ancient forest guardians. These bonus rounds immerse players in the enchanting world of the forest, intensifying the gaming experience.

Themes in Forest Slots and Enchanted Woods Slots

These slots come in a variety of themes, each offering a different woodland adventure:

Fairy Glades

These slots focus on the magical realms inhabited by fairies and sprites, where players can explore glades, seek hidden treasures, and receive the blessings of forest spirits.

Mystical Creatures

In these games, players encounter mythical creatures like unicorns, centaurs, and magical creatures as they explore the forest’s depths in search of hidden wonders.

Ancient Trees and Guardians

These slots revolve around the wisdom and magic of ancient trees, where players seek out the guidance and blessings of these wise woodland sentinels.

Woodland Treasures

In these games, players embark on quests to discover hidden treasures and uncover the riches that lie within the heart of the enchanted woods.

Winning Real Money in Forest Slots and Enchanted Woods Slots

While the immersive themes and woodland aesthetics are the main attractions, players can also win real money while enjoying Forest Slots and Enchanted Woods Slots. These games offer various opportunities to form winning combinations, trigger bonus rounds, and accumulate substantial payouts, much like traditional slots.

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Conclusion

Forest Slots and Enchanted Woods Slots offer a uniquely immersive experience within online casino gaming. Whether you’re a fan of magical glades, encounters with mystical creatures, seeking the wisdom of ancient trees, or embarking on quests for woodland treasures, there’s a Forest Slot or Enchanted Woods Slot that can transport you to the heart of nature’s mysteries. With enchanting visuals, iconic woodland symbols, and engaging gameplay, these slots provide a truly unforgettable gaming experience. So, step into the enchanted woods and let the magic of nature guide you on a journey of wonder and discovery!

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Acquiring Sweeps Coins in Sweeptastic for 2023

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2 weeks ago

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November 23, 2023

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 Introduction

Sweeptastic is a newly launched sweepstakes casino that is currently in the early stages of establishing itself in the industry. Although there are areas, such as its game library and user interface, that are still undergoing refinement, the casino shows potential, particularly with its attractive welcome offer and continuous promotions. Despite a somewhat limited range of games, Sweptastic offers a decent entry point for players looking to explore the world of sweepstakes casinos.

Legitimacy of Sweeptastic Casino

Assessing the legitimacy of an online gaming site involves subjective judgment, but there are signs and factors that can help determine the intention behind a platform.

One important consideration is the transparency of the owner company, and in the case of Sweeptastic, this information is readily available on the casino’s site – Heuston Gaming Limited with registration number 104624.

Additionally, Sweeptastic has taken steps to enhance transparency and player safety. They provide a page displaying the Return to Player (RTP) of all available games and have a Responsible Gaming page that discusses how players can have the best gaming experience while maintaining control over their habits.

With these measures, including comprehensive information and tools for self-control, Sweeptastic demonstrates a commitment to ensuring the safety and well-being of its players.

Currencies

Sweptastic has a straightforward system with two virtual currencies: Gold Coins and Sweepstakes Coins, also known as Lucky Coins.

Lucky Coins (Gold Coins)

In Sweptastic, Gold Coins go by the name Lucky Coins. These coins are exclusively for playing games for fun and hold no real-world value. While the casino generously provides them for free, you also have the option to purchase additional Lucky Coins. They serve as a useful tool for exploring games before committing your valuable Sweepstakes Coins.

Sweepstakes Coins

Critical to the sweepstakes casino experience, Sweepstakes Coins are the virtual currency that transforms your in-game winnings into real money. Sweptastic retains the original name, emphasizing that winnings in Sweepstakes Coins can be redeemed for actual cash. Notably, these coins cannot be bought; however, Sweeptastic offers them abundantly through various promotions or as a bonus when you purchase Lucky Coins.

Promotional Offers at Sweeptastic

Promotions at Sweeptastic are designed to set high standards, offering players ample opportunities to enjoy their favorite games and potentially win real money rewards without the need for any purchases. Let’s delve into the details of each promotional offer:

Signup Bonus

Sweeptastic stands out by providing one of the most generous free welcome bonuses in the sweepstakes casino realm – a whopping 27,777 Gold Coins + 10 Sweepstakes Coins.

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At the same time, the full offer requires account verification; merely registering grants you an initial reward of 10,000 Lucky Coins (Gold Coins).

Daily Login

Acknowledging active members, Sweeptastic adopts the common practice of a Daily Login Bonus but distinguishes itself with a substantial amount of freebies. Simply log in each day, and the casino automatically boosts your balance with 1,000 Lucky Coins.

Happy Hours

For early birds, Sweeptastic introduces Happy Hours, generously gifting 3,000 Lucky Coins every morning between 7 am and 10 am. This bonus is seamlessly added to your account upon login, requiring no additional steps or claims.

First Purchase Offer

While Sweeptastic lavishes players with substantial free coins, the extensive gaming catalog may lead to their quick depletion. In anticipation of this, the social casino presents two exclusive offers for your initial coin purchase:

  • $17.49 pack – 25,000 LC + 25 SC (30% off)
  • $29.49 pack – 45,000 LC + 45 SC (35% off)

Purchase Methods

Now that you’re acquainted with Sweeptastic’s virtual coins let’s explore the options available if you decide to make a purchase on this casino-style gaming platform. Sweeptastic offers six predefined Lucky Coin bundles, each accompanied by complimentary Sweepstakes Coins. You can make purchases using widely accepted bank cards like Visa, Mastercard, and American Express, among others. Additionally, popular online payment providers are supported, ensuring a seamless transaction experience based on our testing.

Redeeming Prizes

For many players, the most exciting aspect is whether Sweptastic truly pays out real cash prizes. The answer is a resounding yes, and the redemption process is notably faster compared to other sweepstakes casinos. You have various redemption options, including bank transfers, gift cards, and even merchandise if you prefer tangible rewards.

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It’s crucial to note that to complete the redemption process; you must verify your account through KYC (providing documents for identity, address, phone, and bank account verification), wager the Sweepstakes Coins at least once (as they are received as a bonus), and have a Sweepstakes Coins balance equivalent to at least $100.

Conclusion

Since its inception, Sweeptastic has set the standard for how things should be done in the sweepstakes casino world. Whether it’s bonuses, games, or player care, this social casino brand truly stands out.

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Enhancing User Engagement And App Discovery: The Impact of User-Friendly Interfaces in App Catalogs

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3 weeks ago

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November 14, 2023

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Mobile applications have become an integral part of our daily lives. From social networking to productivity tools, there is an app for everything. With millions of apps available across various platforms, app catalogs are crucial in helping users discover new applications. However, the success of these catalogs greatly depends on user experience, particularly the user-friendliness of their interfaces.

The Significance of User-Friendly Interfaces

User-friendly interfaces are essential elements of app catalogs as they directly influence how users interact with and explore the available apps. A well-designed and intuitive interface can significantly enhance the overall user experience. Here are some key factors that highlight the significance of user-friendly interfaces:

1.1 Navigational Ease

One of the primary benefits of a user-friendly interface is navigational ease. When users can easily browse through app categories, search for specific apps, and access relevant information, they are more likely to engage with the catalog for longer periods.

1.2 Visual Appeal

The visual appeal of an app catalog matters. An attractive and well-organized layout can captivate users and encourage them to explore further. A cluttered or confusing interface, on the other hand, can deter users from using the catalog.

1.3 User Feedback

User-friendly interfaces often include features for user feedback, such as ratings and reviews. This feedback helps users make informed decisions about which apps to download, enhancing their overall experience.

Comprehensive App Collection

APPiX360’s extensive app collection caters to a wide array of interests and needs. The platform regularly updates its offerings with the latest and most popular apps, ensuring users have access to the newest trends and tools. The importance of user reviews and ratings in aiding informed decisions is a testament to the platform’s user-centric approach. The platform’s commitment to ensuring safe downloads is exemplified through its stringent vetting process, which can be illustrated through the safe downloading of the Pin-up app.

Impact on User Engagement

User engagement is a crucial metric for app catalogs. It measures how actively users interact with the catalog, and user-friendly interfaces can have a profound impact on engagement levels:

2.1 Longer Time Spent

A user-friendly interface encourages users to explore more apps, leading to longer sessions within the catalog. When users find it easy to navigate, they are likely to spend more time searching for new apps and discovering content.

2.2 Higher Retention Rates

Apps with user-friendly interfaces tend to have higher retention rates. Users are more likely to return to the catalog regularly if they had a positive experience during their previous visits. This consistent engagement benefits both users and app developers.

2.3 Increased App Downloads

Improved user engagement often leads to an increase in app downloads. When users feel comfortable and confident while using the catalog, they are more likely to take the next step and download apps that pique their interest.

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Impact on App Discovery

App discovery is a critical aspect of app catalogs, as it directly affects an app’s success. User-friendly interfaces play a significant role in enhancing the app discovery process:

3.1 Effective Search and Filtering

User-friendly catalogs offer efficient search and filtering options. Users can easily narrow down their choices based on categories, keywords, or ratings. This simplifies the app discovery process and helps users find relevant apps more quickly.

3.2 Personalized Recommendations

Many app catalogs use user data to provide personalized app recommendations. A user-friendly interface makes it easier for catalogs to collect and analyze user preferences, leading to more accurate and appealing app suggestions.

3.3 Social Integration

User-friendly interfaces often incorporate social features, such as sharing and following. These features enable users to discover apps recommended by their friends or influencers, fostering a sense of community within the catalog.

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The Pin-Up App Download Experience

As we explore the impact of user-friendly interfaces, let’s take a closer look at the Pin-Up app download experience as an example. Pin-Up is an online casino and sports betting platform that offers a mobile app for users to enjoy their favorite games and place bets conveniently.

4.1 Navigational Simplicity

The Pin-Up app catalog boasts a user-friendly interface that simplifies the navigation process. Users can easily access different sections of the app, such as casino games, sports betting, and promotions, through a well-organized menu.

4.2 Visual Appeal

The catalog’s visual design is visually appealing, featuring vibrant colors and clear graphics. This visually engaging interface captures users’ attention and encourages them to explore the app further.

4.3 User Feedback

Pin-Up’s user-friendly interface incorporates user feedback in the form of reviews and ratings for games and sports events. This feedback helps users make informed decisions about what to play or bet on, enhancing their overall experience.

Conclusion

In conclusion, user-friendly interfaces are instrumental in shaping the success of app catalogs by positively impacting user engagement and app discovery. Navigational ease, visual appeal, and user feedback are key elements that contribute to a user-friendly experience. As demonstrated by the Pin-Up app download experience, a well-designed interface can enhance the overall user journey, leading to higher user engagement, increased app downloads, and improved app discovery. App catalogs that prioritize user-friendliness are more likely to thrive in the competitive digital landscape, benefiting both users and developers alike.

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