Showing posts with label IRS. Show all posts
Showing posts with label IRS. Show all posts

Monday, February 15, 2021

Shred this

Telecasters, gnarly waves and skateboards are just a few of things the word shred applies to. But this past weekend, I decided to finally get off my fat yet supple ass and go shred classic: documents.

The IRS, those friendly government folk who have their hands in your paycheck every two weeks, suggest keeping your tax returns forever, and the backup documents and receipts for seven years before getting rid of them.

Well, never let it be said I can’t take direction. In the cabinets above my son’s closet were accordian files and boxes filled with receipts for every year going back to 1995, and actual tax returns going back even further.

You do the math. Never mind, I’ll do it for you. That’s 26 years and then some.

It was a chore I’d been putting off, because frankly every time I’d look at my little personal shredder I could see it trying really hard not to make eye contact with me. It was like it was in the front row at an improv show when they were asking for volunteers.

Also, it never could’ve handled it. The motor overheats after about five minutes of straight shredding, and the tiny bin fills up fast and has to be emptied over and over and over.

After sorting out what I was going to keep—the most recent ten years worth—I decided to have the rest of it one and done by calling a professional shredding company. A quick search on Yelp, and I landed on PFS Shredding. In a word, they were awesome.

The truck you see above pulled up to the house. Immediately all the neighbors started wondering what secrets I had that were so important I had to hire a professional to do my shredding. I imagine the international spy theories were flying fast and furious—something I'm accustomed to given how similar Daniel Craig and I are built.

Or maybe they thought I was part of the last administration, just tiding up the paper trail before leaving the White House.

Anyway, my new best friend Mark, who owns PFS, rolled that trash bin up to my front door, and I emptied my boxes and folders full of papers into it. He rolled it back to the truck, where it was lifted and dumped into the shredder.

There’s a camera inside the truck, and I got to watch all my documents being shredded on that screen to the left of the bin elevator. I can’t adequately express the thrill of see decades of papers turned into confetti so fast. 26 years of documents were shredded in three minutes.

Also, PFS was out to my house within two hours of my call. So yes, the minute he left I wrote him a stellar Yelp review.

Now I’m on a complete tear. Every piece of paper and receipt I don’t need from now on is going into a box, and when I have enough I’m calling Mark again and having him bring his big old confetti making truck back.

It'll give the neighbors something to look forward to.

Thursday, October 23, 2014

86 the 1099

It's the very definition of buzzkill. You work a certain number of days for an agreed rate, and you expect to see that amount on the check. Then payday rolls around, and you're as giggly as a 13-year old on her way to a One Direction concert. But when you open the envelope, thanks to Uncle Sam, the check is about a third lighter than you expected.

That giant sucking sound? It's all the things you were going to do with the money disappearing.

Here's how it used to work.

You'd go into an agency, do the work, then send them an invoice. Maybe they'd ask you to sign a NDA. Maybe. Then, you'd get a check for what you invoiced. Every cent. The rate you'd agreed on. The amount you expected.

It was called 1099 income. And it was a beautiful thing. But that was then and this is now.

Apparently those boys at the IRS have no sense of humor when it comes to not getting their payroll taxes from the working masses. Which is what was happening with freelancers in agencies.

So now, agencies are only allowed to hire someone freelance for a very short period of time before they're required by law to put them on staff as a temporary employee. But most of them go straight to temp employee status.

The way it works now is you go into an agency, fill out a stack of employee forms as thick as the Yellow Pages, that range anywhere from the Confidentiality Agreement to the Sexual Harassment Policy (SPOILER ALERT: Don't do it). You also sign a W-4 form which, unlike the 1099, means taxes are taken out for you and you get a W-2 form at the end of the year with the breakdown.

It also means you don't get the freelancer's second best friend next to free food: deductions.

In a nutshell, W-2 money is good and bad. Good because you don't have to remember to pay those pesky quarterly taxes like you do on the gross 1099 income, and the agency pays half the employee tax. Bad because you don't get all the samolians.

I've always been good with money - go figure. So I prefer 1099 income. I'd rather juggle my money accordingly and pay my own taxes. I also have this little pet peeve about the government reaching into my pocket, or paycheck, and taking money out.

Among all the papers you sign for W-2 income is an agreement that even though you're considered a temporary employee, you're not entitled to any benefits.

Including getting the full amount you're owed on your check.