Direct deposit

Not long ago, I was freelancing at this agency that had a national car account, and wasn't too far from the beach. Which describes almost all of the agencies I freelance at.

But at this particular one, they had a little service they offered freelancers that others didn't. One that made my life easier. Ask anyone that knows me - I'm all about easy.

As far as I was concerned, this service was pure magic both in its concept as well as execution.

I speak of the freelancer's little helper, Direct Deposit.

Being a little compulsive, and always liking to keep a close eye on my money, for years I'd get a paycheck then make a mad dash to get to the bank before closing time and deposit it. But not anymore.

Now, I sign up whenever and wherever I can. Magically, my money appears in my account a day before payday. I can see it online. I can write checks against it. I can talk to it late at night, tell it my hopes, my dreams, my fears.

I might be getting off topic here.

The point is I used to be afraid of giant corporations being able to get their big corrupt hands on my bank account, and now I'm not. That's true for a lot of things in my life. Flying. Sushi. Adam Sandler movies.

Alright, I'm still afraid of Adam Sandler movies.

If you have the opportunity to get Direct Deposit where you work, I strongly suggest you do. It's nice when your company makes money appear in your account.

Of course, it'd be better if they could do it as fast as I make it disappear.

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.