Question about getting paid...

[Brenduh]

This might be a bit of an odd question. A place like HQ or Heartsong... how do they pay? I mean is it buying your book or paying you as an employee. The reason I ask is I'm on disability for a heart and lung disease and while I wouldn't mind losing the money, I can't afford to lose the medical benefits. I know that is an odd question but very important in my situation.
Thank you,
Brenda

[Gravity]

You'd be considered an independent contractor, and would get a 1099 at tax time. That means you have to pay your own taxes and anything else you need to set aside by law, and do it each quarter prior to April 15, or pay an IRS penalty. It's this way for every author for every house out there, both Christian and secular.

Now if a person goes to work at a house in production, editing, marketing, or what have you, that's a different story. Then you'd get a W-2 and withholdings like any other employee.

[Brenduh]

Thanks :) That's what I needed to know.

[Gravity]

You're welcome! :Sun:

[Deb Kinnard]

That said, you only get a 1099 if you earn over $600 in a year. Sadly, small press and e-press is not always up to that level, though I'm told sometimes it's quite lucrative. When you sell, you'll want to get the advice of a qualified accountant. I've always used one since that first contract & have never regretted it.

[Brenduh]

Thank you. My only fear is losing my medical benefits because I now have a "profitable skill" which we all know isn't a steady income. My medications and equipment costs are around $5000 a month and that doesn't include doctors visits and hospitalizations.