#independent-contractor
Independent Contractor
Contractor payments, 1099 tracking, and compliance
The 1099 Threshold Is Now $2,000: What OBBBA Changes for Small Businesses in 2026
OBBBA raises the federal 1099-NEC and 1099-MISC filing threshold from $600 to $2,000 for payments made in 2026, with annual inflation indexing starting in 2027. The income stays taxable either way, some states still require reporting at $600, and per-contractor totals — not per-invoice amounts — determine whether you file.
Yoga Studio Bookkeeping: Why Class Packs Are Liabilities, Not Revenue
A prepaid class pack is a liability until the classes are taught. This guide covers deferred revenue for yoga studios — recognizing pack and membership income as classes are attended, writing off breakage, classifying instructors as 1099 contractors vs W-2 employees, separating taxable retail from service revenue, and a five-step monthly close.
Charter Fishing Boat Bookkeeping: Per-Trip Costing, Crew Pay, and Surviving the Off-Season
A charter fishing operation grossing $126,000 a year can still not know what a single trip costs to run. This guide covers per-trip costing for fuel, bait, and mate pay ($100–$150 day rates plus 15–20% tips), 1099 vs. W-2 crew classification, vessel depreciation with Section 179's more-than-50% business-use test, why booking deposits are liabilities until the trip runs, off-season cash reserves, and the IRS's three-of-five-years profit test for hobby-loss scrutiny.
Bookkeeping for House-Sitting Businesses: Per-Night Rates, Deposits, and Key Liability
House sitters typically charge $50–$150 per night for overnight stays and $250–$500 weekly, but a deposit collected before a sit begins is unearned revenue, not income, until the stay is completed or the cancellation window passes.
Professional Organizer Bookkeeping: Package Pricing, Client Property Liability, and Why the Donation Deduction Isn't Yours
A bookkeeping guide for professional organizers covering how to book package deposits and maintenance retainers as unearned revenue, the insurance clients expect (general liability, E&O, workers' comp — roughly $1,500–$3,000/year), why the Goodwill donation deduction belongs to the client rather than the organizer, and when a day helper must be classified W-2 instead of 1099.
Bookkeeping for Resume Writers and Career Coaches: Deferred Revenue, Package Pricing, and 1099 Writers
A $2,400 coaching package paid in April but delivered through July isn't April income. How resume writers and career coaches should split package payments into deferred revenue, recognize each resume, LinkedIn rewrite, and coaching call as delivered, track 1099 contract writers, and deduct CPRW and ICF certification costs.
Scuba Dive Shop Bookkeeping: Why Certification Training, Not Gear Sales, Keeps the Doors Open
Dive shops that book prepaid certification fees as revenue on receipt, lump training and retail into one sales account, or depreciate rental gear like retail inventory routinely understate their true profitability — this guide covers deferred revenue for course fees, tank-testing cost tracking, and instructor pay classification specific to dive centers.
Translation and Medical Transcription Bookkeeping: Per-Word Billing, 1099 Risk, and HIPAA Recordkeeping
How translation agencies and medical transcription services can cost freelance linguist payables against per-word client billing, avoid 1099 vs. W-2 misclassification risk, and meet HIPAA business associate recordkeeping requirements.
The DOL Wants to Rewrite Independent Contractor Rules Again: A 2026 Rule-Change Guide for Businesses That Hire Freelancers
The DOL's February 2026 proposed rule would rescind the 2024 six-factor independent contractor test and replace it with a two-core-factor economic reality test resembling the 2021 rule — here's what changes, what stays the same, and what businesses that hire freelancers should document now.
Bookkeeping for Dog Boarding and Pet Sitting Businesses: Platform Income, Sub-Sitter 1099s, and Home-Office Rules
How dog boarding and pet sitting businesses should track revenue by service line, reconcile Rover and Wag payouts against the $20,000/200-transaction 1099-K threshold, file 1099-NECs for sub-sitters paid $600 or more, and apply the strict exclusive-use home-office rule — the childcare daycare exception does not extend to pet care.
NIL Income Taxes: What College Athletes Actually Owe the IRS in 2026
NIL income is self-employment income subject to a 15.3% self-employment tax on top of ordinary income tax, and college athletes owe tax on any net NIL earnings over $400 even without a 1099, a form now only required above the 2026 threshold of $2,000.
Fitness Studio and Personal Trainer Bookkeeping: Deferred Revenue, Instructor Pay, and the KPIs That Matter
Prepaid training packages are a liability, not income — how fitness studios should use deferred revenue accounting, classify instructors under the FLSA economic-reality test, and track the KPIs, like the 70–75% class utilization benchmark, that separate profitable studios from struggling ones.