Edit Legal Pennsylvania Independent Contractors Forms For Free

Anyone who is a sole proprietor, business owner or is self-employed has to pay Pennsylvania self employment tax, which is actually a Social Security and Medicare tax. The Pennsylvania self employment tax provides 12.4% to Social Security and 2.9% to Medicare, for a total of 15.3%.

PA requires that an independent contractor provide services that are not unique to the employer's business, sets his or her own work hours, offers his or her services to the public at large, and is employed under a contract.

In addition, a contractor does not guarantee its work indefinitely. In Pennsylvania, any defective condition must present itself within 12 years from the completion of construction. After such time, there is no cause of action for injuries sustained due to alleged defects in the construction.

When you work on a 1099 contract basis, the IRS considers you to be self-employed. That means that in addition to income tax, you'll need to pay self-employment tax. As of 2022, the self-employment tax is 15.3% of the first $147,000 in net profits, plus 2.9% of anything earned over that amount.

In these cases, a worker will be designated as an independent contractor only if the worker (1) has a written contract to perform such services, (2) is free from direction or control over performance of the services both under the contract of service and in fact, and (3) is customarily engaged in an independently ...

Ordinarily, when you're an independent contractor (also called a 1099 employee), you can't collect unemployment if you're out of work. Neither independent contractors, nor their clients or customers, pay state or federal unemployment taxes.