John Bliss <jbliss1234[at]gmail.com> wrote:

- quote -

Actually you cannot pass the "self-employment" test because
you are an intended victim of the ~infamous~ Section 1706 of
the 1986 Tax Reform Act which effectively makes individuals
who provides certain technical services (computer programming,
systems analysis, engineering, designing, drafting) are the
employees of the third parties through whom they contract this
work.

This was the handiwork of Daniel Patrick Moynihan and I have
yet to meet a single person who was not opposed to it.

- quote -

Unfortunately, no. Write letters to your U.S. Representative
and to your U.S. Senator.

Dick

"John Bliss" wrote:

- quote -

You're not "considered an employee of the payroll company," you're a temp.
If you want to be self-employed, quit the "payroll company" and go make bids
on your own.

You can use your non W-2 Schedule C earnings as the basis for retirement
plan contributions. See IRS Publication 560.

--
Phil Marti
Clarksburg, MD

I work as a contract programmer for several clients, and for some, I
work from home, and my hours at each client vary quite a bit from week
to week. I can easily pass the IRS test of "self employment". However,
for most of my clients, I get paid W-2 wages, not directly from the
client, but from pass-through, pay roll companies. For example, this
year, I will have 4 W2s and 2 1099s, all from different companies. I
am not eligible for contributing to 401k plans at any of the pass-
through payroll companies I get paid through, because the length of
the contract is usually less than 6 months, which is the minimum
eligibility period for most companies for setting up a 401k.

MY question is: Am I eligible to set up an individual 401k, even
though some of my income is W2 income and technically I am considered
an employee of the payroll company?