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    Workers's Avatar
    Workers Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 27, 2014, 10:41 AM
    Temporary employment
    I work for a temporary agency and they pa me and use a w2 at the end of the year. They take out all my taxes etc. Can I establish a consulting firm as a workers comp adjuster and have the temp agency pay me via a 1099 full pay and have ADP payroll service take out my taxes. Therefore I can write off my transportation as a workers compensation consultant.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 27, 2014, 01:17 PM
    That course of action is feasible if you do a lot of traveling during the day.

    If, however, you drive from home to a single office, work all day, then return home, THAT travel is commuting whether you get paid under Form w-2 or Form 1099-MISC, and commuting costs are NEVER deductible.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Jan 27, 2014, 01:43 PM
    Most temp agencies won't go along with that. So even if it was feasible and practical, its unlikely you will get them to agree.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #4

    Jan 27, 2014, 06:28 PM
    Several years ago the IRS cracked down on temp agencies, not allowing any more consultant/contractors unless they met all the requirements of being one.
    Do you know what they are? There are at least 20. I highly doubt that you can meet even the top 5 of them.
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