employment / taxes

[rh71]

Say I work for company A. I also do freelance web design on my own. I've signed a non-compete agreement when I got hired with company A, but I really only do freelance for the extra cash on the side and not as a business of my own.

A client for my freelance work wants to file tax form 1099 on the amount they're paying me on a project. Will company A be able to find out I'm doing something on the side like this through the tax info in any way shape or form ? I don't believe they have access to my personal tax info, but I just want to be absolutely sure it CAN'T come back to bite me in the @$$.

Thanks.

 

[Gonz]

I'm not a tax attorney/advisor nor do I play on one television but they shouldn't have access to that info. HOWEVER, you are violating a contract & should the employer find out...

 

[PT]

I really only do freelance for the extra cash on the side and not as a business of my own.

Um, if it's taking business from the company you work for, it's still competition.

Also, if he files a 1099, you do it as a business.

 

[rh71]

I don't know if you can even see this as a non-compete issue since these people asking me to do work would not usually engage my company A to do similar work. I mean they do web stuff, but it's not like I'm taking clients away from them. Some clients are even just referrals from friends. Individuals trying to run a small business. They would never engage company A because they are more "big time" ... and deal with many IT aspects, not just web.

Are such clauses so strict that I can't even go out on my own time and make additional cash with the sets of skill I own ? I can understand it if I tried to start a business and stole their client list.. but this isn't the case.

As far as the 1099 issue, are you saying that I have to be a business (as opposed to a common person) if they file that form ? Can they file it if there's nothing in the books about what I already do ?

 

[PT]

Well, if they file it, you have to report it as well. If you're getting a 1099 filed on you, you are essentially an Independent Contractor. You can probably get by if it's not too much, if it starts becoming a sizable percentage of your income though, you best be making sure you have everything in place as a business.

 

[PT]

Are such clauses so strict that I can't even go out on my own time and make additional cash with the sets of skill I own ? I can understand it if I tried to start a business and stole their client list.. but this isn't the case.

You'd have to tell us that, I would think each one is different, but I would bet the strictest reading of it wouldn't allow so much as setting up your mothers web site for apple pie.