Re: Billing Problems with Corporate Client

Subject: Re: Billing Problems with Corporate Client
From: Tina Cipolla <Tina_Cipolla -dot- CODISFBI -at- NOTES -dot- SAIC -dot- COM>
Date: Thu, 8 Jan 1998 09:41:30 -0500

Eric and Deborah,
The problem you are encountering probably has to do with current tax
law. My husband (software contractor) has encountered a similar thing. If
you work for a company as an independent (i.e. not through an agency, on a
1099 ), then the employing company is legally liable if you do not pay
your taxes. By using an agency, the company is no longer liable. From what
I understand, contracting agencies lobbied congress to make this the law,
thereby insuring that they stay in business, because companies, in an
effort to avoid possible confrontation with the IRS, will now force all of
their outside contractors to work through an agency.
Smart move for the agencies, eh?

Tina Cipolla
SAIC

P.S. to the list: To anyone who has been wondering where I've been, I have
switched jobs and cities. I've left AccuSoft in MA and started here in
Washington DC at SAIC. I've been off of email for three months and just
signed on here yesterday.

It's good to be back.




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