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Thread: W2 or 1099

  1. #1

    W2 or 1099

    Any ideas?

    If Company offers same rate for W2 and 1099, which option is better?

    Suresh [img]images/icons/frown.gif[/img]

  2. #2
    Senior Member
    Join Date
    Nov 2002
    London, UK

    Re: W2 or 1099

    W2 - They'll look after all your taxes
    Life should NOT be a trip to the grave with the intention of arriving safely in an cool and well preserved body, but rather to skid in, chocolate in one hand, beer in the other, body wrecked, totally worn out and screaming WOO HOO what a ride!

  3. #3
    Senior Member
    Join Date
    Feb 2000
    Minneapolis, MN

    Re: W2 or 1099

    Assuming that health insurance, benefits etc. are not factored in.

    I'm a W-2 with no benefits. If I were a 1099 with no benefits, my hourly rate would have to be 30-50% higher.

    But if I were a W-2, WITH benefits, I could logically take a 10-20% hit in my hourly rate and be even with what I am now.
    Jean James
    I deliver what I promise, and I only promise what I can deliver.

  4. #4
    Senior Member
    Join Date
    Aug 2001
    Atlanta, GA

    Re: W2 or 1099

    The same rate for both? Absolutely have to agree with both responses - W2 would seem the better option, unless you are planning on not being with the company very long, and having multiple 1099s for the year.

    With 1099, chances are you'll have at the very least, accounting fees, outside of anything else. As Jean said, it would also depend on whether there are benefits provided to you separate, and if any of your costs are factored pre- or post-tax.

    Personally, I would probably choose 1099 right now, but that's mostly because I've gotten a refund for most of the last years, and could use that money up front myself [img]images/icons/wink.gif[/img] Additionally, when I work at a high rate for several months, and am unsure where I'll be later, it makes sense, because I'm taxed right now as if this would be my yearly rate, and will very likely overpay for the year.

    Um. OK. Much babbling, little help, but it's been on my mind. [img]images/icons/grin.gif[/img]
    Annemarie Martin
    Association for Software Testing

  5. #5

    Re: W2 or 1099

    Thanks for all responses.

    Health Insurance and Benefits does not factor in here.

    Is there any problem if you work on 1099 and W2 for 2 different clients?

    Direct Vendors to the clients are asking 1099 only with Corp to Corp?
    Did any body experienced this?
    If we establish a corp for the same, they are asking for Liability insurance.

    By keeping all this in mind.I accept JeanJ's views of atleast 30% to 50% higher rate.

    Any views to share?




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