[Hidden-tech] Question re: finances

[Jeremy Dunn]

Jeff,

You might google for "Employer of Record" services.  I have used one such in
the past, although I would not recommend that particular firm; and I know of
others that service independent contractors.  But the last time I look at
specific companies was several years ago.

Basically, they act as the "Company" for contracts and agreements you sign
with customers.  This works best if you have one or a few large customers;
and wouldn't work if you have lots of little customers.

You submit your time to them; they bill the customer; they collect the
money; they take a percentage for their services.  They take out the taxes,
and pay you on a W2 basis.  They also provide benefits like liability
insurance at no extra fee; group health insurance, etc.

It may or may not solve your problem, but might be worth investigating.  The
key facts are :
    a) the makeup of your client base, and the nature of your relationship
with each client
    b) what percentage the EOR firm charges.  I got away with 1-2% at one
point, but I was billing at fairly high rates.  5% might be more typical,
but it might not be worth it at these levels.

If you want more details or a list of firms that existed in this space a few
years ago, email me off-list.

Good luck!
- Jeremy

----- Original Message ----- 
From: "Jeff Rutherford" <jeff at trylonsmr.com>
To: <hidden-discuss at lists.hidden-tech.net>
Sent: Wednesday, July 12, 2006 7:43 AM
Subject: [Hidden-tech] Question re: finances


   ** Be a Good Dobee and help the group, you must be counted to post .
   ** Fill out the survey/skills inventory in the member's area.


Here's a question for everyone.

Since I absolutely hate having to keep track of quarterly estimated
taxes (several times I've had to scramble and come up with large sums to
cover taxes), I'm wondering if a service exists to deal with this.

Ideally, what I would like to do is have a service similar to
Administaff or Paychex where every time I received a contractor payment
from a client (with no taxes deducted of course), that I could send the
gross amount to the service and they would deduct the appropriate
amounts of taxes, FICA, etc., and take care of those payments so that I
don't have to keep track of those amounts.

I don't know if something like this exists. Of course, I could hire a
bookkeeper, but I'd rather have a service that automatically deducts
those taxes from the various payments I received, and keep track of
those taxes for me.

It's my understanding that the two services I mentioned above are set up
to handle a regular salary situation vs. a fluctuating contractor income
that is not the same every month.

Any ideas would be appreciated. Thanks.

Jeff

_______________________________________________
Hidden-discuss mailing list - home page: http://www.hidden-tech.net
Hidden-discuss at lists.hidden-tech.net

You are receiving this because you are on the Hidden-Tech Discussion list.
If you would like to change your list preferences, Go to the Members
page on the Hidden Tech Web site.
http://www.hidden-tech.net/members