freelance work taxed by client?
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- grunttt
a friend of mine recently did a freelance project for a local agency for an agreed upon price. when it was time to pay up the agency gave her less than was agreed to and they said that they had taken out taxes. Does this sound right? I've never freelanced directly with an agency so I didn't know what to tell her.
- dinky0
no thats bs
unless the contract stated that the position is full time but temp
if its one off job, than they shouldnt take taxes
ask them to provide tax form at year end to prove that they have taken taxes so that she doesnt have to pay taxes again
but as a freelancer, u can write so much off that its more benefitcal to not get taxes taken off
- radar0
I never heard of an agency doing that on a freelance basis, unlees possibly it was a regular freelance gig?
Why the name change?
- nosaj0
She has to charge them tax.
- grunttt0
thanks for the responses so far. i thought it sounded like BS myself.
name change: i hit 12345 responses with gruntt so i retired it (kinda OCDish sounding now)
- dinky0
she wont be able to charge them tax unless she is a corp body that works as a company not as an individual
- nosaj0
Sole Proprietor - in Canada you have to charge 15% if you make over 30K a year as a freelancer.
- tGP0
ive done work for some agencies that will only work with you as a 1099 contractor, and they withhold
some dont though
anyone ive worked with that withheld from me let me know beforehand and also requested my SS#/tax id# before we started the project...
- joyride0
yeah thats a good point tGP. If they don't have your tax info, how could they take tax out for you? Another thing, was it a paycheck or did you invoice them? Paychecks can be taxed, invoices should not have tax taken out.