[Verse 1] Sarah drives for rideshare apps, delivers food at night Mike sells crafts on Etsy, builds websites on the side But come tax season, questions swirl around their status Are they employees with W-2s, or contractors with latitude? [Chorus] A-B-C or common law, two tests to classify A is control, B is business, C is customary tie Schedule C for profit-loss, self-employment's bite Fifteen-point-three percent, Social Security's flight [Verse 2] The common law examines behavioral control first Does the company dictate when, where, how you do your work? Financial control comes next, who pays for supplies? Integration matters too, how central is your service? [Chorus] A-B-C or common law, two tests to classify A is control, B is business, C is customary tie Schedule C for profit-loss, self-employment's bite Fifteen-point-three percent, Social Security's flight [Bridge] Form 1099-K arrives when you've earned six hundred dollars Third-party processors track your payment followers Mileage, phone bills, equipment costs can all reduce your burden Business expenses on Schedule C, let deductions lighten [Verse 3] Platform workers navigate this maze of classification Some states use ABC tests with stricter limitations Document every business mile, save receipts for gear Quarterly payments help avoid a shocking bill next year [Final Chorus] A-B-C or common law, know which test applies Track expenses, save receipts, prepare for tax surprise Schedule C and SE tax, gig workers pay their share Six hundred threshold triggers forms, so keep records with care [Outro] Independent contractor life means extra paperwork But understanding the rules helps make the system work
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