I guess it's a location thing, then.

i refuse to get an EIN number. somehow the companies we work for are trying to NOT pay unemployment tax and payroll taxes. they think if we get an ein number it will show we are independent contractors. the EIN number proves nothing and it takes 2 minutes on line to get. getting an EIN is silly and the IRS will be asking for an audit of your taxes one of these days if you have one and do not report. The individual state decides if you are an employee or not and I can tell you the State of Wisconsin is trying to get all of these companies to pay the unemployment tax which is stupid. I believe in Nevada to be a mystery shopper you have to have a private detectives license. I believe shoppers are providing a great service and NO company is willing to pay taxes on wages paid to mystery shoppers that only work once in a while for them. If the company wants an EIN i do not plan to work for them. good luck trendsource--maritz backed down and so will they. they will loose shoppers left and right--just wait a month and see what happens.

I tried to do it online but since I already had one it told me to call. When I did call the usual blah wait thirty minutes on hold. I figured a letter might work instead of sitting on hold. I tried to change the parameters of the name need etc yet with my SSN thye were aware of it being me nad having a previous number assigned.

Flash -- I want to make sure I understood your annecdote. The EIN triggered local, not federal scrutiny, right? So, no matter what the company says and claims, they are protecting their butts after having been given some half assed advice. I will reiterate, using an EIN will not protect the MSC if they are misclassifying workers. So, they are trying to avoid a potential problem with a remedy that will not protect them if they are misclassifying workers.

The input from different posters here indicates that some have had problems in their geographical areas resulting from getting an EIN. Those are local issues which do not reflect the situation at the IRS (federal) level. These local issues are apparently making this a hot button topic for many shoppers, depending on the city, county, and state involved. Because there are so many different localities involved, it seems we are each pretty much on our own to determine what happens where we live. Problems at the local levels are not caused by having the EIN, but are caused by local regulations pegging off the EIN.

I am in Texas, in a rural area with a small town county seat. At the time I got the EIN decades ago, I lived at the same address, but my business was in a nearby large metropolitan area. The EIN, of course, followed me home to the country when I closed the business in the large metropolitan area. When Maritz requested one, I thought I would have to get a new one as the business had been closed, but found the old one is apparently forever and attaches to the individual, not the business. I had never really thought it through.

Those who can get the EIN without repercussions will apparently be able to continue shopping, or start shopping, for the companies who want the EIN. Others will have to decline to get the number if the penalties outweigh the benefits. Of course, if it develops that the large majority of shoppers decide not to get the EIN, it may have some effect for a while on the ease of shop assignments. Considering the huge numbers of shoppers and the apparent rapid turnover, this should smooth out quickly. New shoppers join the ranks every day and the void won't last long. A new shopper is not an experienced shopper, but a new shopper becomes an experienced shopper with some time and a little guidance from the MSC.

This thread has been educational. I have learned the situation regarding the EIN is not the same for others as it is for me, and I accept that as a fact. Before I accepted that as a fact, I was already aware that we each have to deal with this as we see fit. This thread and similar others have alerted all of us that we need to check this out thoroughly to be certain we know what we're dealing with on our various home fronts.

In one of these postings, it was implied that Irene said she was not reporting her Trendsource income and that is definitely not what she said. Irene, be assured that your post was not misunderstood by everyone. I definitely got the "I do" part of the post. Any careful reader understands you report that income.

There is being helpful, which is the intention of most posters. Then there is just being picky and argumentative, which is interesting and highly entertaining, so it's all good. Overall, an excellent and highly enjoyable thread. Keep 'em coming, always love the varied and low cost fun.

pziburski -- Companies never pay withholding or any other fees and taxes for ICs and that is contained in our contracts. It is possible that the individual states can decide whether someone is an employee or not for state income taxes, however, the IRS does have a test they apply to people working for companies to determine whether they are employees or not for federal tax purposes. As I said before, each jurisdiction is different so there can be consequences at the local level that the MSCs don't know or care about. It is for that reason that I stated that people should do the research to make sure there is nothing local that can adversely affect them if they get an EIN. Furthermore, I would not take anything a MSC posts about this at face value since they are only interested in protecting their interests, not the shoppers.

I loved shopping for Trend Source and doing their Business audit/evaluations. I paid for a background check last year and now they want me to pay again. So aside from the fact they want an EIN, now they want me to pay for a bakground check again. Don't think so. They don't pay that much for their shops!

avitoots Wrote:
-------------------------------------------------------
> Flash -- I want to make sure I understood your
> annecdote. The EIN triggered local, not federal
> scrutiny, right?

Correct.

I have used my personal prepaid (which has the same terms as this one which incidentally they agreed and it is setup under my SS and not the EIN) with this same company for at least 2 years. They protected me from identy theft twice and replaced lost cards 3 times (I can be clumsy). They have a $3/mo fee and if I put cash on the card when my husband cashes his check we pay only a $3 processing fee instead of $6. They allow me to link up direct deposit straight to the card at no cost. I can get cash back at no cost at any register that offers it. As long as I do not use an ATM I avoid any fees. There is no interest as it is prepaid and not a secured credit card. Thought I admit I think I chose the best one, greeddot sounds like the kind of card you mean. Thank you for the warning and for those wanting to know I use the Money Card from Walmart. Yes, we file jointly, and yes we know I have to report my income . . .I'm confused about where any of that last bit came in or was in reference to, be a dear and remind me? Thanks

Katherine

avitoots Wrote:
-------------------------------------------------------
> I use my own name for my acting, house/pet sitting
> and mystery shopping business. I have applied for
> an EIN only once when I created a murder mystery
> company with a partner and we actually hired
> actors as ICs. It was a completely different
> situation than mystery shopping. I don't see why
> you can't run your mystery shopping business under
> your own name. And, as far as I know, you can
> open as many banking accounts under your own name
> so that shouldn't be a problem. I would take a
> good hard look at that prepaid Visa because I just
> saw a story about exhorbitant fees attached to
> them and how you may not have the same protections
> that you have with a regular credit card. Also,
> if you file your taxes jointly, you'll still have
> to include your shopping income on the tax return.

Hmm, see the packaging calls it a prepaid Visa, I assumed Credit Card. My bad, it is indeed a prepaid debit card but can be treated as a credit card at the register if it will not run as a debit (no clue why, but I see no extra fees and it can not take more than the actual purchase or amount in the account which ever is higher). I stand corrected and apologize for the misuse of the term.

Katherine


avitoots Wrote:
-------------------------------------------------------
> And, there is a difference between prepaid debit
> cards and prepaid credit cards. The prepaid
> credit cards had been called secured credit cards.
> Not sure if there is still a differentiation.
> Most debit cards are connected to some kind of
> bank account.

Yep, I have a premier account, may have been biz acct, they chanrged (when I used it) $0.25 + some odd amount per incoming transaction. I stopped using it for a while then downgraded to a regular acct. My seperate account for the shopping is a basic account.

Katherine

LisaSTL Wrote:
-------------------------------------------------------
> If I missed this earlier forgive me. If you open a
> business account through PayPal aren't you subject
> to fees that personal accounts don't have?

katherine -- I may have mentioned paying taxes whether you get a 1099 or not because that is a misconception many have not because someone on the board isn't actually doing that. In my acting business, that is a discussion that comes up every year at tax time. Also, I had just read an article a week or so ago about the prepaid cards and how fees can eat up a lot of the funds put on the card without people realizing it and just wanted people to research them before using them. As far as fees goes, you need to be vigilent. Jamie Dimon once tried to charge people $3 to do business with a teller at Chase (I think it was still called Bank One at the time) and BofA just tried to charge $5 per month for a debit card. Both fees were dropped after a huge public outcry against the fees. So, though the fees are relatively low now, you need to keep an eye out because these banks will nickle and dime us to death if they're allowed to.

Katherineevans - Love your comment "be a dear and remind me". That phrase is perfect for many situations, and when I read it I got a warm fuzzy. I must have known a very nice lady who used the term; perhaps it was my gentle and refined Aunt Lena. It's ever so much kinder than "what the h--- are you talking about now?" I'm going to remember and use it instead of some of the more acidic comments I sometimes make. You don't mind if I borrow it, do you? Be a dear and say you don't.

Katherine again...you seem to be generating a lot of advice so I will throw in my 2 cents worth(and will not charge a fee)...My daughter just opened a new "debit card" account thru an online bank..since it is not a msc I guess I can give the name. She moved to New Orleans which only seems to have small regional banks we never heard of. I am not trying to push anyone to use them but they are one of several that do this now. She is using ING but we came across several others that do this. Also look into USAA who offers fee free debit cards. Both these companies have systems with free access to atm's or reimbursement for using other atms than their own. They do not charge monthly fees and they have lots of other wonderful free stuff that other banks charge for. And both are upstanding banks. If you search there are other companies offering debit cards with a minimum balance of a penny or so, no fees unless you do something really stupid. These are actually debit cards but you put money in upfront to spend when you need it so it is the same idea as a prepaid card but without the fees.

sandyf -- Is USAA connected to the military?

My thunder has already been stolen, but I'll put my 2 cents in anyway.
It is irrelevant whether you have an EIN or SSN when doing schedule C. That being stated, it does show the seriousness of "your business" to both the government and company.
There is a movement within the federal government to require reclassification of IC's vs Employees. That is what started all this nonsense. They are not stupids, at least some of them. There is a significant amount of income untaxed out there - significant. They will try anything to get more of what they believe is their share.
For those receiving disability benefits, as the bride does: the government has to show that you are able to be "gainfully" employed; working a minimum amount of hours with what would be considered sustainable income. MS hardly will show that for most people.
And finally - yes, regardless of source or amount of income - the law requires you to report it. It does not matter whether you use EIN or SSN. I got EIN primarily because I would give the kids some money from shops (where allowed), and the IRS does requires it for that - even your own children (& I do deduct it).
Okay, finally #2: Your income may not be reported unless over 600, but it is there anyway. Remember, your fee is deductible for the MS company that pays it. So, you do show up somewhere. If the company is ever audited, the information is now available to the IRS.

shedmyskin Wrote:
-------------------------------------------------------
> EDITED: Personal attacks are not tolerated. You
> have the right to disagree. Just be objective
> about it. A single post does not make you an
> expert...

I am a disabled senior citizen who ms to supplement my monthly income. I have had an EIN number for many years but have never used it when I file my taxes.I file my earned income under my SS#. People who are on Disability should work with their social security office and their accountant to learn about supplemental monthly and yearly income thresholds. There is a monthly and yearly amount that is allowable as income which will not affect your disability income.There are many programs for disabled individuals, who want to supplement their income or who want to return to work.Check with your local and or state rehabilitative service organizations and with the federal Social Security Administration office for additional information.

Luci is right on. I have a close friend on SS disability. I helped her seek out the information that she needed to legally do some MS while drawing disability. Because she was quite newly disabled, she has had to report her ongoing medical activites for a couple of quarters, as well as her income. She passed both "tests" without any issues. Only work as flexible as MS provides would allow her to earn anything and it makes a big difference to her quality of life to be able to do MS. Not only the income, but, also, the contact with people outside of her home, make this a great option for her.

I know some of you haven't liked some of the things I posted and may have misinterpreted some of the things I wrote, however, I am now being harrassed by an individual reading this thread. I will not out the person at this time, however, after asking the person to not contact me again, I got a PM notice which I promptly deleted. It is one thing to challenge me on things I say and then allow me to respond, it's quite another to harrass someone with ignorant and vile PMs because you disagree. So, I am publicly asking this person to stop contacting me. You know who you are.

avitoots Wrote:
-------------------------------------------------------
> I know some of you haven't liked some of the
> things I posted and may have misinterpreted some
> of the things I wrote, however, I am now being
> harrassed by an individual reading this thread. I
> will not out the person at this time, however,
> after asking the person to not contact me again, I
> got a PM notice which I promptly deleted. It is
> one thing to challenge me on things I say and then
> allow me to respond, it's quite another to harrass
> someone with ignorant and vile PMs because you
> disagree. So, I am publicly asking this person to
> stop contacting me. You know who you are.

avitoots, harassment is not tolerated on this forum. PM JacobJ and/or mrcomputer101, forwarding the PM info and name of the harasser and they will take care of it in short order. That is not something for open forum, that's something our admins do behind the scenes to protect us.

So, the question remains: why does
> Trendsource need their shoppers to have EINs?
> What IRS requirement are they trying to
> circumvent?


All I know is that Trendsource's communications on this topic are confusing and even self-contradictory. It makes me feel like I'm getting taken for a ride.

I think a company has every right to look after their financial interests in whatever way they deem appropriate. The confusing part to me are the claims that they are protecting us somehow.

I would appreciate a company that was forthcoming about it and just said, "We feel that we need to cover our butts. This is what we would like from you. Sorry about the trouble it may cause!"

Perhaps the feeling of skullduggery comes from TS not believing their own hype. It seems like they feel the need to convince us by creating misleading posts to hawk their own kool-aide. They are well aware of the burden that getting an EIN may place on some shoppers.

The problems are really going to grow as other MSCs cave from the worry and start converting shoppers to employees. It will remove the argument that ALL shoppers are ICs.

I agree with all that you said, Steve. Trendsource has every right to run their business any way that they see fit.

But, they're not being truthful in the way that they convey their messages to shoppers. For that reason, I'm very sour on Trendsource.


SteveSoCal Wrote:
-------------------------------------------------------
> I think a company has every right to look after
> their financial interests in whatever way they
> deem appropriate. The confusing part to me are
> the claims that they are protecting us somehow.
>
> I would appreciate a company that was forthcoming
> about it and just said, "We feel that we need to
> cover our butts. This is what we would like from
> you. Sorry about the trouble it may cause!"
>
> Perhaps the feeling of skullduggery comes from TS
> not believing their own hype. It seems like they
> feel the need to convince us by creating
> misleading posts to hawk their own kool-aide.
> They are well aware of the burden that getting an
> EIN may place on some shoppers.
>
> The problems are really going to grow as other
> MSCs cave from the worry and start converting
> shoppers to employees. It will remove the
> argument that ALL shoppers are ICs.

Steve,
None of the companies outside of Nevada are converting shoppers to employee status as far as anyone I have consulted knows. Requiring an EIN wn't convert one to employee status, of course, since employees use SSNs, as do most ICs.

Steve certainly hit the nail on the head. Every time this subject comes up it is accompanies by misinformation, scare tactics and how the companies are doing this for our own good. A little honesty would go a long way

I wasn't implying that the EIN would be involved in anything having to do with being an employee. It's obviously an attempt to differentiate ICs and employees.

I was referencing the fact that many companies (not just MSCs) are running scared at prospect of the repeal of section 530 protection, especially in CA. One direction to combat that is the way TS has gone. Another would be just moving to an employee model.

If some companies start moving in that direction, that will further confuse the issue.

Steve -- What is Section 530 and is it a federal regulation or local?

Steve -- That's what I have been trying to convey, though maybe not as coherently as I hoped. Yes, it is true that a company has the right to look after their financial interests, however, shoppers need to become informed and not take what they're being told at face value so they can look after their financial and legal interests.

Google "Repeal of section 530" and you will have a better understanding of why MS companies are freaking out.

I'm not defending the position MSCs are taking. I'm just trying to explain why they may act that way.

Shoppers, as a group, have generally not been respected much for their business acumen. You can't force people to educate themselves. For every one who gets it, there are five others falling prey to a scam or buying into what they have been told.

Can you blame the the MSCs for trying to influence us? Well...I guess you can a little bit. I certainly don't intend to work for TS, despite the fact that I supplied every MSC with my EIN when I started shopping. It's mainly because TS leaves a bad taste in my mouth from the bogus postings and doesn't really offer the type of shops I like to do....so I can afford not to shop for them. If I was hungry and unemployed, I would have much less integrity, I think.