I've recently separated from my employer to engage in private IT consulting / computer support. I came across an acquaintance who is in the same business and was overflowing with work to do. I've started handling some of his clients while maintaining my own business license and still working from my home office. I represent myself as a member of his company and invoice customers from his company. I then invoice his company to pay me for my agreed rate.

My question is... since I'm representing myself as a member of his company and, at this time, working solely on those clients... can I proceed as I have or are we looking at some kind of payroll tax evasion? I'd rather not be directly employed since I would lose on many of the tax deductions available to me as an independent contractor. In practice, I am self managed and only take on the accounts of my choosing.

Any guidance on how we should proceed would be appreciated. I want to make sure we're on the up and up in regards to tax law. Thanks in advance.

You work on only the clients of your own choosing, you set your own hours, work from your own home…sounds to me like you are an independent contractor.

In which case, your acquaintance has no legal responsibility to withhold taxes for you, but rather the burden is solely on you to pay taxes to the government.