… ordinary employers of record do not.
When you start out freelancing, you soon find that one of the hidden costs is the amount of money spent on business related items and activities that are not billable to a client. Recovering those costs as tax deductible expenses can be challenging and time consuming. After all, tax day only happens once a year. When you join Solo Workforce you gain the many advantages of our premium employer of record service. This includes tax-free expense reimbursement throughout the year, giving you use of your money without having to wait for April 15th.
Self-Employed Consultants Get Tax-Free Write-Offs
If you are self-employed, you can write off your out-of-pocket business-related expenses. Such tax-free write-offs can add up to substantial savings totaling thousands of dollars a year in tax-sheltered income.
Most Wage-Employed Consultants Don’t Get Tax-Free Write-Offs
Unfortunately, if you are wage-employed, chances are you will be locked out of most tax-free write-offs. Worse yet, if you are a contract professional working through an ordinary employer of record (for example, a temporary help agency, contract staffing firm or ordinary back-office provider), you will most likely have to give up all of the tax-free write-offs you would have enjoyed as a self-employed professional.
Solo Workforce Offers Hope
But, there is hope for contract professionals. When you join a premium employer of record, you don’t have to give up your tax-free write-offs. A premium employer of record — and the most notable example is Solo Workforce — lets contract professionals write-off the same expenses as a self-employed professional.
It’s Our Innovative Business Model
What makes Solo Workforce stand apart as a premium employer of record is our innovative business model, creating what is arguably the nation’s most powerful employer of record platform, designed specifically for highly compensated contract professionals.
Higher Tax-Advantaged Income Than Self-Employed
The tax-advantaged business model of Solo Workforce enables higher total compensation than the traditional business model of an ordinary employer of record. In fact, the Solo Workforce business model is so powerful that a Solo Workforce employee typically earns higher tax-advantaged income than a self-employed independent contractor with the same gross receipts.
An ordinary employer of record cannot offer its employees a tax-advantaged income because an ordinary employer of record has no tax advantages to offer.
IRS-Compliant Accountable Plan
Solo Workforce reimburses our contract professionals according to an IRS-compliant accountable plan for out-of-pocket business expenses incurred in the course of work.
Reporting business expenses is easy. Solo Workforce employees simply log into the Solo Workforce Independent Professionals website and enter their expenses online under their personal account.
Tax-Free Expense Reimbursement
Reimbursed expenses include, but are not limited to, the following list:
Business Promotion & Marketing
- Dues for membership in professional associations
- Trade and professional association meetings
- Presentation materials, conference room rental
- Promotional materials – i.e. business cards
- Advertisements – yellow pages, radio, classifieds
- The professional services of a marketing broker or talent agent
- Separate, designated business phone line
- Internet connection fees
- Dedicated data lines
- Mobile Phone
- Up to $5,000 per year
General Supplies & Miscellaneous
- Technical publications, manuals, and magazines
- Dues for membership in professional associations
- Office supplies
- Computer Media
- Licenses and professional fees
- Computer equipment/peripherals
- Test equipment
- Specialized tools and utilities
- Repairs and maintenance
Meals and Incidental Expenses
- While away from home or your principal work site on business
- Entertaining current and prospective business customers at your principal work site, restaurant, or other location
- Attending a business convention, workshop, or reception, business meeting, or business luncheon
- Meals and refreshments for all participants attending business meetings for the purpose of proposing new business or discussing current business
- Up to the GSA maximum allowance
Training / Tuition
- Undergraduate credits
- Graduate credits
- Up to $5,250 per year in tuition
- Technical and professional workshops, seminars, and related training
- Certification training and exam fees
- Textbooks and training manuals
Office Rental Allowance
- Actual or pro-rata value of dedicated office outside the home, used predominantly by the employee for work
- Non-commute cab and bus fare
- Airfare for flights to seminars and business trips
- Tolls and parking for business-related travel
- Non-commute mileage
- IRS-approved commuter benefit
- Up to $15,000 in out-of-pocket medical expenses.
As you can see, the list of tax-free expense reimbursements is extensive. Imagine the money that contract professionals employed by an ordinary employer of record must forfeit because their employer lacks an accountable plan for the reimbursement of business-related expenses.
Imagine also how much more money you could keep if you worked through Solo Workforce as your employer of record.
All Is Not Lost If A Staffing Agency Placed You
If a recruiting service or contract placement agency matched you with a client, you can still use Solo Workforce as your employer of record. Contact Solo Workforce to learn how you can earn more tax-advantaged income and enjoy better employee benefits while subcontracting through the agency that made the match for you. The Solo Workforce tax-advantaged business model means everybody wins.