FAQ - Consultants

1. Q: What kind of business is iamindependent.com?

2. Q: Is iamindependent.com a PEO?

3. Q: How can I be eligible for unemployment compensation when my project ends,  if I am an independent contractor?

4. Q: Why should independent contractors invoice more than employees?

5. Q: What is the process for signing up for your services?

6. Q: Are you a staffing agency?

7. Q: Do I need a new job to join iamindependent?

8. Q: How do I get paid?

9. Q: What industries do you operate in?

10. Q: What other benefits do you offer?

11. Q: What is the difference between an independent contractor and W-2 employee in eyes of the IRS?

12. Q: How much do you charge for your services?

13. Q: I am currently classified as an LLC and not a 1099. Can I still use your services?

Q: What kind of business are you?

A: iamindependent, inc. is a business processing outsourcer. We become your employer of record. Essentially you will be working as an independent contractor, but now you will receive all of the benefits associated with a traditional W-2 employee plus all of the benefits associated with an independent contractor. For example, you will now be reimbursed for IRS approved business expenses instead of waiting for when you file your tax return.

Q: Are you a PEO?

A: No, our business model is similar but different in these three distinct areas. 

First, a PEO does not reimburse you for your business expenses

Secondly, PEO’s will go into a business and “take” all of their employees regardless of the salary or job title. However they will not take any 1099’s and those people are usually let go. 

Lastly, a PEO works as a co-employer. This does not mitigate the risk of co-employment. The IRS still may come in and audit the firm to determine if employees are properly classified. Look at Vizcaino vs. Microsoft to see how costly this can be for a company. 

Q: How can I be eligible for unemployment compensation when my project ends,  if I am an independent contractor?

A: iamindependent, inc. is your employer of record and you’re a W-2 employee of iamindependent so you will be entitiled to all of the insurances and benefits as long as you meet the government requirements.

Q: Why should independent contractors invoice more than employees?

A: iamindependent recommends all of our contractors charge an additional 20% to cover the employer side of payroll expenses.

Q: What is the process for signing up for your services?

A: The process is painless and simple. We have you fill out some forms which can be submitted to us over the internet. There is no need for you to travel to us. Once you start working we will only need approved timesheets from you to begin invoicing on your behalf. 

Q: Are you a staffing agency?

A: No, we do not find jobs for any of our contractors. You find your own employment. However we might be able to help you find a project. Also we will provide you with guidance when you are negotiating with staffing agencies.

Q: Do I need a new job to join iamindependent?

A: No, you don’t need a new job to sign up with us. Let us contact your current employer to see if they would be willing to enter into a corp. to corp. contract with iamindependent for your services.  However you won’t see any benefits until you start receiving income. If you already have a job you can sign up for our services while continuing to work on your project. Again, we do not act as a staffing agency and place you in any jobs.

Q: How do I get paid?

A: We offer direct deposit, wires, or standard checks. Since we do everything internally, we are very flexible when it comes to payment. As long as you have a balance in your account, you can be paid weekly, bi-weekly, or monthly. We even offer deferred compensation which you can even earn interest on. Call iamindependent to speak to one of our associates for more information. 

Q: What industries do you operate in?

A: We operate in most industries mainly operating in the IT and business fields. We do not operate in physical labor fields because our insurances do not cover these industries.

Q: What other benefits do you offer?

A: One of our main benefits is the ability to be reimbursed for IRS approved business expenses. This enables our employees to have lower taxable income which usually increases their take home pay. Also when applying for a loan, if you have one employer of record, the banks will look more favorably at you because you have a sole employer of record and how a stable history of employment instead of being self-employed and showing many different projects.

Q: What is the difference between an independent contractor and W-2 employee in eyes of the IRS?

A: Please look at our page “ Are you misclassified? “ based on the 20 question test from IRS determining your employment status. 

Q: How much do you charge for your services?

A: Our services cost 4% of your total dollars invoiced. If you invoice $10,000 then our fee is $400. All of our services are included in this fee regardless of the amount invoiced. Please see this page to see a list of all of our services.

Q: I am currently classified as an LLC and not a 1099. Can I still use your services?

A: Yes, you can start using IAI's services without having to dissolve your LLC. Instead of putting the income of your business through your LLC you will instead put the income through iamindependent.com. This will alleviate you of all of your back office liabilities without having to use up your precious time or hire an accountant as you were with the LLC. Your LLC will remain untouched on the side and available to you if you ever decide to return to your previous setup.