[thelist] contract work questions

[Dan Romanchik]

It's kind of odd that you'd be doing contract work for your employer, but oh
well.

It's great that you're keeping track of the hours worked. I hope that you
and the company agreed on the hourly rate before hand.

As far as invoicing, why bother with an invoicing program? You only have
this one client, right? Why not just create an official-looking invoice in
your word processor program and send them that? That's what I do and my
clients have responded quite nicely (with checks!) to that.

As far as taxes are concerned, at the end of the year, the company will
issue you a 1099 form. They also send a copy of this form to the IRS, so the
IRS will be looking for you to also report this income. By the end of the
year, you'll have had to pay 80% of your total tax liability, so if your
consulting income is a significant proportion of your employee income,
you'll want to make some estimated tax payments throughout the year. You can
go to the IRS website for more information on how and when to file.
Self-employed people are required to make quarterly estimated tax payments.

Good luck!

Dan
----------------------------------------------------------------------------
Dan Romanchik - Web Developer
dan at danromanchik.com, 734-930-6564


----- Original Message -----
From: "Sarah Heffron" <sarah at meatlike.com>
To: <thelist at lists.evolt.org>
Sent: Wednesday, June 26, 2002 9:09 AM
Subject: [thelist] contract work questions


>
>
> Hello,
>
> I have never done contract work before but I am right now. I have a
> completely non-computer job at the moment and I'm getting paid regularly
> for that, but I'm also doing computer stuff (web dev and sys admin
> stuff) for the same people as contract work. They know I haven't done
> this sort of thing before and they'd probably be more than willing to
> help me figure out how to do things, but I'd rather find out for myself.
>
> Anyhow, I need to bill them I guess and I don't know how that works.
> Everytime I do anything for them I keep track of how long it took and
> what I did and then I want to put together an invoice showing what I
> spent on what times the hourly rate, etc. I don't know how taxes and
> things are involved in this. I did several searches on google with
> various terms and I'm really coming up empty handed. If someone could
> point me to a good resource I'd really appreciate it.
>
> Also, I'm looking for some sort of program to do invoices with,
> preferably for linux, but I can use windows if I really need to.
> Something I'm looking for would have me enter the date/time/info for
> each task and it will tally up the hours and figure out the grand total
> and print out something nice, if such a thing exists. I'd write one
> myself but I don't have the time for it right now.
>
> TIA,
> Sarah
>
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