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Author Topic: Contract timber cutting - what to charge?  (Read 2925 times)

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Offline TKehl

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Re: Contract timber cutting - what to charge?
« Reply #40 on: January 09, 2018, 10:05:15 AM »
Mike's comments on employer withholdings is important.

If you haven't been self employeed or done contract labor before, the taxes are a lot different.  You want to keep all receipts, track your mileage, and charge a little extra to cover SSN and taxes.  Keep track of income as well.  You will probably get several 1099's.

When an employer takes care of taxes, they pay half your contribution to SSN.  (In reality they cut what they pay you to match that, but it's money the majority of people never see or think about.)  When you file taxes with self employed income, you pay your typical half + the other half your employer would have paid.  It's good to set some a side each check so you don't get slammed with a large bill at tax time.

The good news is you will have more deductions, like vehicle depreciation, possibly a home office, part of the cell phone bill, etc.
Lucas 6-13+slabber, Mr. Sawmill bandmill, orange chainsaws, JD SSL, Case Backhoe, farm tractors, trailers, and 150ish acres of trees.  Fledgling woodshop with CNC router, laser engraver, Woodmaster 712, and a Berlin 108 moulder (project).  Oh, and a lovely (patient) wife and four offbearers.

Offline Lumberjohn

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Re: Contract timber cutting - what to charge?
« Reply #41 on: January 09, 2018, 12:23:06 PM »
I think we are starting to look at the difference between self employed contractors who find their own jobs,  and employees who go where the boss tells them.  Where i am at, the employee doesnt have the leverage to be negotiating per tree.  He gets paid a fixed rate of some sort generally based on skill, speed and dependability.  The employer covers tax withholding and cutter just worries about showing up, makin it to quitting time and getting his check on friday. I know a few and they dont negotiate tree rates per job.

His title did say contract cutting, which in my mind is self-employed, with all the other pros and cons.. I assume he can legally do it for another guy that bought the timber. I just wonder why the Amish guy doesn't have a crew of his own, they do around here. As a matter of fact, last I was in this business English were hiring Amish, not the other way around.

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