Many Coeur d’ Alene employers are hiring 1099 workers in Coeur d’Alene Idaho (independent contractors), instead of the traditional W-2 employee. There are many reasons for this, but the biggest benefit is through the lower administration and tax cost. This directly shifts the burden of paying employment taxes, cost of tools or supplies, and travel expenses on the back of the Idaho independent contractor.
Which Taxes Must Be Paid?
Coeur d’ Alene independent contractor will pay all required state and federal income taxes, along with Idaho’s self-employment taxes.
How Often Do I Pay Taxes?
Usually, the CDA independent contractor is required to make quarterly estimated payments based on the previous year’s income. This payment goes to the IRS and allows you to avoid being hit with penalties and a high tax liability at the end of each year.
Reducing Taxes Owed.
To offset tax expense, you must take advantage of CDA’s tax deductions, credits and all general Idaho business expenses. You will need to treat your 1099 working status as a full fledge Coeur d’ Alene business.