claiming it as a hobby, you cannot deduct most things. Claiming it as a business is better. And why don't you just have the money direct deposited into your bank account instead of bringing a check to the bank?

That would be lovely, but it is not always an option. The companies I work with are across the board, PayPal, DD and good old fashioned check.

Years and years ago I had employees, so I got an EIN in my personal name. I gave this number to Maritz, and now I've given it to Trendsource. I get checks in my personal name and deposit them to my personal account, or cash them at my bank. I don't have a business account. When I do my income tax return, I report on my social security number. The EIN number has no effect on my income tax return and is not reflected anywhere on my return. The EIN number is used to report employer's taxes to the federal government. Since I no longer have employees, I don't use the number on any federal forms. Sometimes these EIN numbers are in a company name. Maybe Maritz and Trendsource are hoping to get these numbers with a company name, thinking it reflects an established independent business (contractor). I don't know exactly why they want it, but I have it and I don't mind if they have the number. I'm pretty sure you can still get this number in your personal name if you would like to do that. Checks would be issued in your personal name and you could handle them as usual without having to set up a separate business account and incur those expenses. The IRS tracks us by our social security numbers. The EIN number is for reporting federal payroll taxes withheld from paychecks, along with the employer's contribution. It is also used to report federal employer's unemployment taxes. It doesn't have anything to do with mystery shopping, except that a couple of the companies are asking for it.

"The EIN number is for reporting federal payroll taxes withheld from paychecks, along with the employer's contribution. It is also used to report federal employer's unemployment taxes. It doesn't have anything to do with mystery shopping, except that a couple of the companies are asking for it."

Then in reality what the heck does it do for them? Other than a misguided attempt to prove we are an IC rather than employee I see no purpose and that is reason enough not to go through any additional effort for a company that at best can provide me with the occasional filler job.

LisaSTL Wrote:
-------------------------------------------------------
> "The EIN number is for reporting federal payroll
> taxes withheld from paychecks, along with the
> employer's contribution. It is also used to report
> federal employer's unemployment taxes. It doesn't
> have anything to do with mystery shopping, except
> that a couple of the companies are asking for
> it."
>
> Then in reality what the heck does it do for them?
> Other than a misguided attempt to prove we are an
> IC rather than employee I see no purpose and that
> is reason enough not to go through any additional
> effort for a company that at best can provide me
> with the occasional filler job.


Exactly. I don't see what purpose it fulfills for Trendsource.

I sent TS a polite message that my accountant recommends I not use an EIN and that the IRS apparently prefers I use my SS# over an EIN.

TS's response: "At this time we are requiring all Agents to obtain EINs. If you decide that this is not something you wish to obtain please let us know and we will terminate your account."
... not even a "thanks for all your hard work"!

I have not thrown an opinion in the ring as yet. I'm not doing anything until I can no longer schedule shops with Trendsource but since someone new in my area has been scarfing down projects (I mean that literally since 11 sub shops were quickly taken for a job that had a two 2 day window between 11 and 1 PM) this is not a huge problem. I'm not going to have heartburn over an occasional pizza shop.(yes pun intended)

What confuses me is MDavisnowell's post bringing employment taxes into the mix. I'm pretty sure that business owners file both a personal return and a business return. Legally you have to report on earned income some way. If not on your federal return under your SSN than some way with your EIN.

I am not an accountant but I am not naive either. There is a catch somewhere. This income has to be reported. I don't have enough information to make a decision today.

It's up to the individual person, but I have been using an ein for years and have done so without issue. Filed on my same taxes as regular every year. No extra paperwork, nothing. I've done over 200 shops already this year for trendsource and have no plans on stopping because they want a different tax id.
Plus they direct deposit twice a month, how can you beat that?

If you've already done 200 shops for them in just over two months then they have a lot more in your area than around here. If I had taken the time to do that many I would have ended up actually making less in January and February since we just see those $5 to $7 shops, LOL!

Interesting they offered to "terminate" PizzaPizza. I e-mailed asking who should terminate my account, me or them and their final e-mail said my account would be "locked" in May.

If you have a small business which is a proprietorship (not incorporated) you file your business return on a Schedule C, which is part of your individual personal income tax return and is attached to your 1040. You do not file a separate return for yourself and a separate return for the business. The profit or loss from the Schedule C carries over to your 1040 and is added to other income, if there is any.

I report my mystery shopping business income and deductions on Schedule C, and this carries over to my 1040. My mystery shopping business is a proprietorship and not a corporation.

If I incorporated my mystery shopping business, it would stand alone as a business entity and would not be reported as part of my personal income tax return. The corporation would report its own return. I could own this corporation 100%, or I could sell shares to others. Any income I received personally from the corporation would generate a federal form from the corporation reporting that income to the government, and I would receive my copy of that form. I would then report my personal income from the corporation on my personal income tax return, but I would not be reporting the overall income and deductions of the corporation on my return. In that case, there would be no Schedule C.

If the corporation or the proprietorship had employees, payroll and employer's taxes would be reported to the IRS on an Employer's Identification Number, commonly known as an EIN number. Most employers report these payments quarterly and make quarterly deposits to cover the money collected from employees plus the employer's contributions.

I hope this information will be helpful. I'm reasonably certain that like any explanation of IRS procedures it will fail to clarify.

@LisaSTL If the shops only paid me 5 to 7, I would not do them nor will I participate in any bidding that I see some people talking about. They wouldn't be worth it. However, I know that they offer shops and extensive routes to their seasoned shoppers(and cover the necessary expenses of doing them). I've been shopping with them for years, and do shops for them in NY, NJ, CT, MA, FL, AL, GA.

That goes for a number of mystery shopping companies. Many times, what you see on their job boards are shops that are not practical for routes, or ones their seasoned shoppers don't want.

For instance there is one company that I shop for, they don't publish the shops for this one client anywhere, We all have our own territory and they get done every quarter. They pay well above average.

Been shopping for around 10 years, and I started out taking jobs on the job boards from companies and still do on occassion, but for the most part I everything I get now is long term projects.

Moral of the story, have a good relationship with the company you shop for, and they will offer you better unlisted shops with consistent work if you want it. Note, not all companies do this, but a number of them do.

I'm looking directly at a Schedule C (which is used to report MS income). In the upper right corner, I put my SSN. Two boxes below, there is room for the EIN. I'm fairly certain that you can list both on the same form when filing taxes.

Joytron - My bad. I didn't realize there is a space on the Schedule C for this because it is no longer applicable to me. You can file a schedule C without an EIN - I do it every year. I haven't used the EIN for reporting since the 1990s. Apparently the space is there for the EIN so they can cross reference if you are claiming payroll expenses and deductions for employer's contributions. If you are claiming those deductions, then you should have filed Forms 941 and 940 and made quarterly deposits at your bank using the EIN.

Hey techman, I had already figured out that wasn't what you were doing which is why I included the LOL

and this whole thing with EIN, has to likely do with the proposals in Congress over 1099 workers. They are trying to prepare themselves for the passage of the bills, even though I don't see them passing.

I thought this kind of rears its ugly head every few years and never ends up going anywhere.

it usually never does, but it a bid to pay for the constant extension of unemployment benefits you may see them sneaking it in there to help pay for it

A ton of shops that were previously taken have now shown up on my job board. The cowboy hat place with the nasty sandwich that is a reveal is wide open!! Looks like people may be dropping TS.

I won't be taking any unless there is a HEFTY bonus.

but you get to eat that delicious sandwich!

I dropped one of the cowboy shops for this week and just received an email asking me if I'd help with some shops that just got posted, one was my shop, go figure.

No thank you, tech man! Lol

I asked them to cancel my asignment and they called me to say that I could do shops this month but starting April, the EIN is a must so I just asked them to cancel my contract with them. They send me the confirmation e-mail. I am done with them.

gigishopper Wrote:
-------------------------------------------------------
> A ton of shops that were previously taken have now
> shown up on my job board. The cowboy hat place
> with the nasty sandwich that is a reveal is wide
> open!! Looks like people may be dropping TS.
>
> I won't be taking any unless there is a HEFTY
> bonus.


I noticed this too. Time to ask for ridiculous PAD pay and not care.

Really sad. I've enjoyed the work I do for them, although its been mostly pizza. I was really hoping they would drop this EIN thing. Makes me mad.

The EIN is a way to get around having us as W2 employees. It helps them save taxes, etc. The govt. is cracking down on companies that hire independant contractors and trying to get tehm to hire the contractors as employees. In any case, it allows the IRS to track how much you make as an employee instead of a contrctor. 1099's are on;ly required for paymwent over $600. This lets the IRS know exactly how much or little you make and can tax you.

I do not use my SSN at any website on line. I use my EIN. I keep my SSN to myself and each time someone ask for it they get my EIN. It is easy to use when doing taxes. I have had a EIN for years and am HAPPY with it.

mcthumblb Wrote:
-------------------------------------------------------
> The EIN is a way to get around having us as W2
> employees. It helps them save taxes, etc. The
> govt. is cracking down on companies that hire
> independant contractors and trying to get tehm to
> hire the contractors as employees. In any case,
> it allows the IRS to track how much you make as an
> employee instead of a contrctor. 1099's are on;ly
> required for paymwent over $600. This lets the
> IRS know exactly how much or little you make and
> can tax you.


Having an EIN vs an SSN has absolutely nothing to do with contractor vs direct employee status.

You can have an EIN, be classified and paid as an independent contractor, make less than $600 and not receive a 1099.

The EIN does not provide more information to the IRS than a personal SSN does. It does nothing for your status as an independent contractor. There's really no change at all, which is what everyone's gripe is.

I won't miss the pizza, but I will admit that I love the Business Verifications. Among the best-paying, lowest-maintenance shops I do... :-/

Wow, I hadn't worked for TS in a month and I guess I missed a lot ! I have an EIN for a business I set up. I have used it with Maritz and was initially paid via my name but then I had to remind them they were paying a business not an individual. I also had a business bank account.

After reading all the posts now I understand why a lot of people are upset about TS requiring the EIN. For one, unless you are a sole propietor, it creates a lot more work for us. For two, it reminds us that they are skirting the law in order to not pay us health benefits and social security tax to the IRS and other such things.

Since I had already started my business two years ago, the EIN thing does not bug me so much but I can understand others frustrations.

TS has lost a lot of business in my area so I have not worked much for them One can only eat so much pizza. That looks bad for them. I am sure they have spies reading the boards like the other MS companies do.

frodosdojo Wrote:
-------------------------------------------------------
> For two, it
> reminds us that they are skirting the law in order
> to not pay us health benefits and social security
> tax to the IRS and other such things.

How is paying an independent contractor skirting any type of law? Consultants, specialists and temps have been around for years and years.

And employers are not required to offer health benefits, even if you are an employee. A good amount of part-time employees have no employee sponsored healthcare.