freelance question

[rh71]

If I would like to work on a project as a freelancer, is it possible to request payment off the books and still be able to protect myself in case of non-payment ?

I'd also like to hear how your experiences went with working off the books... did the client (if they were part of a company) accept this ?

[JabezStone]

What do you mean, "off the books"? Do you mean, like, "under the table" where the money is given, but not reported to the IRS? If so, I would strongly recommend that you play on an even keel, and not attempt to subvert the legal process. We need to buck up and do what's right.

[rh71]

It's very little money < $500 and it's not worth my primary employer finding out (can they possibly?). Otherwise I don't mind paying any taxes... which I always do.

[Frets]

Simply put.

If your not recording it you can't verify it.
If you can't verify it it won't stand up in court.
If it's recorded you are responsible for it.

[MG315]

i think what he means is doing work for a client from the company he works for and not informing the company (moonlighting with current customers).

depends on the project. I worked at a print shop and I got almost all my web design work from it because when someone came in needing a website, I did it outside of work. There was no problems with it (they actually helped me because I gave them a commission) because the work i did wasn't offered by the business. If, however, a client asked me to do print work on the side, that would enter the grey area. Why would the client want to work with you personally and not through the company? You are basically cutting out the middleman and causing your company to lose money.

If, for some reason, you decide to do the work and you deem it moral and legal, the way you would do it "off the books" is by drafting a contract, getting 50% upfront (or whatever you state in the contract as the downpayment) and do the work outside of your job (at home). On completion you get the remainder of payment, or however you decided to divide the payments. I would highly suggest NOT meeting clients at your workplace; how would you feel if one of your employees was stealing business and then using your offices to meet with the clients? schedule a meeting with them at their office or some other place (I've used the local country club a few times, always a great choice) to conduct business and don't do the work for that client while you are at work.

If the work you are planning to do is not offered by the business, it should be fine. you might want to consult with the owner or your boss about what to do. If it is offered by the business, I don't see why the client is trying to go directly to you (maybe hoping to get it done cheaper) but make sure you feel you are doing the right and moral thing. If you don't feel confortable doing it, recommend to the client to work through the business.

[johntabita]

If what you saying is, that a client of your employer has approached you to do the work instead, in order to perhaps get it done cheaper; well, then be careful. You are competing with your employer. They can (and probably will) fire you if they find out.

There are also laws against this sort of thing. For example, if you were to quit and then solicit all of your former employee's clients, they could sue you.

[rh71]

Thanks for the responses. For clarification... this person who wants me to do work for him has nothing to do with my primary employer. He contacted me through a friend who knows I do web stuff. My main concern is that my primary employer will see I do "side work" outside of them... since I have a non-compete clause... but this really isn't taking my company's clients away... this is just through a friend. I really should not have anything to worry about in terms of the non-compete, but I still don't want them knowing I do side work on my own time. It is still web work and I'd rather no questions be raised.

If it is true that my primary employer cannot see my tax information, then my question is answered ... I can file taxes on this work (if it is indeed over $500).

Thanks again for your responses.

[MG315]

as long as the client was brought to you without the help of the company you are fine (if he came into your company asking for it and you said "hey, call me tonight at 8 and we can discuss doing this outside of work. I can do it 50% cheaper" you would be in trouble). The non-compete agreement is in relation to the company's clients, not yours that were obtained without the help of the company.

[johntabita]

My main concern is that my primary employer will see I do "side work" outside of them... since I have a non-compete clause... but this really isn't taking my company's clients away...

If you are working for a web shop and you signed a non-compete clause -- I could be mistaken, but I would think that means you cannot do any web work "on the side," and that you should refer any such work to your employer.

[pheck]

tax-wise you have to be careful. you're set up now probably to have a certain amount taken out of each paycheck for taxes. Unless you get a good sum back at the end of each year for overpaying your taxes, you run the risk of not having paid enough taxes if you report your income as you should. if you have not paid enough taxes at the end of the year, and owe over a certain amount, you may be assessed a penalty fee. to avoid this you have to do the estimated payments (form 1040-es) quarterly, or change your exemptions at your current job so that more money is kept for the government each pay day. of course you're only talking about $500 here so it probably won't be a factor, but if you do other jobs or higher paying ones in the future, you should consider this. good luck.

[Loyal Rogue]

You will have to thoroughly examine the non-compete agreement that you legally entered into with your employer in order to have the best answer.
Most non-compete agreements I have seen (and signed) state that you are not allowed to engage in the same industry outside of your employer, but some also have you agree not to engage in the same type of work for a period of time (usually 1 year) after leaving their employment.
I have had to sign some pretty heavy-duty non-compete, proprietary and intellectual property clauses with my current employer and if I were to break them would mean losing a great paying job, full medical and dental, and possibly getting sued for lost revenue.
Definitely NOT worth it to me or the wife for a few hundred bucks...
Luckily my employer doesn't provide hosting or webdesign services (yet) so I am able to legally run a web design company.
Your case sounds different.
Your answer lies within the agreement you signed.

The general rule of thumb is if you can't tell your boss, your wife/girlfriend, and your mother about it at the end of the day then you probably shouldn't be doing it.