This is contract between an employer and an independent contractor to perform data entry services for employer.
Alabama Data Entry Employment Contract - Self-Employed Independent Contractor
State:
Multi-State
Control #:
US-INDC-10
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Word;
Rich Text
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How to fill out Alabama Data Entry Employment Contract - Self-Employed Independent Contractor?
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FAQ
The Internal Revenue Service considers freelancers to be self-employed, so if you earn income as a freelancer you must file your taxes as a business owner.
Independent contractors report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Also file Schedule SE (Form 1040), Self-Employment Tax if net earnings from self-employment are $400 or more.
The contract should state who pays which expenses. The contractor is usually responsible for all expenses including mileage, vehicle maintenance, and other business travel costs; work supplies and tools; licenses, fees, and permits; phone and internet expenses; and payments to employees or subcontractors.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
Remember that an independent contractor is considered to be self-employed, so in effect, you are running your own one-person business. Any income that you earn as an independent contractor must be reported on Schedule C. You'll then pay income taxes on the total profit.
The engagement usually is more intensive too, contractors normally devote all their work hours to a single client for the entire duration of the contract. In contrast, freelancer agreements are usually much shorter. Many companies hire freelancers for a single project, or even for a one day requirement.
Self-employment income is income that arises from the performance of personal services, but which cannot be classified as wages because an employer-employee relationship does not exist between the payer and the payee.
A 1099 employee is a US self-employed worker that reports their income to the IRS on a 1099 tax form. Freelancers, gig workers, and independent contractors are all considered 1099 employees. In contrast, actual company employees are considered W-2 employees.
Freelancers are independent contractors who should receive 1099 from the company using their services and are subject to paying their own taxes, including self-employment tax.
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