© 2018 Leimberg Information Services, Inc. ALL RIGHTS RESERVED No user may modify this software in any way, including but not limited to, decompiling, copying, sharing, disassembling, or otherwise reverse engineering the software.
Note that the pass-through deduction is available for taxable years beginning after December 31, 2017 and under current law will not be available for taxable years beginning after December 31, 2025. Employees generally have access to unemployment insurance, workers’ compensation, are protected by anti-discrimination laws, and may have other federal and state law benefits that are not afforded to independent contractors. Clients and advisors may want to take those laws and protections into consideration when determining whether it is more advantageous to be an employee or an independent contractor. Group benefits that may be available through an employer that are not available as an independent contractor may also be taken into consideration. Further, it is not as simple as changing one’s title from employee to independent contractor. There are various tests that need to be met as to not be classified as an employee. Additionally, the IRS may presume that a "former employee" who is now an "independent contractor" is in the trade or business of performing services as an employee, which is not a qualified trade or business for purposes of 199A. For purposes of this calculator, we can only assume that the individual would meet the classifications to be an independent contractor for tax purposes and for other state and federal law purposes. If there is no substantial change in the individual’s work function and/or the employer’s control over the individual’s work, the individual may still be classified as an “employee” for tax purposes and state and federal law purposes even though the individual purports to be an independent contractor.
These calculators do not represent tax, accounting, or legal advice. Individual taxpayers should rely on their own advisors. The authors and publisher expressly waive and disclaim any and all warranties concerning the calculators and their use or operation, whether express or implied, including without limitation, any warranty of merchantability or fitness for a particular purpose. The authors make no warranties as to the results to be obtained from the use of the calculators. You expressly agree that the use of the calculators is at your sole risk. The authors will not in any way be liable to you or any other person or entity for any damages, claims, liabilities or losses, regardless of cause, arising from the use of the calculators. The calculators are provided to you on an "as is" basis and without warranty of any kind.