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 1099 or W2 which one is better option
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Posted on 05-26-20 11:08 AM     Reply [Subscribe]
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As I am in transition to switch from my current employer to Vendor . My vendor is giving option of 1099 or w2 ? On w2 I have idea but it’s not much difference . But on 1099 I don’t know how things work. If any expert here please help me out to understand the difference in terms of tax and all and how things work.
 
Posted on 05-26-20 11:30 AM     [Snapshot: 24]     Reply [Subscribe]
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If u are with vendor w2 is better for tax filing and gc process later pasa
 
Posted on 05-26-20 12:06 PM     [Snapshot: 49]     Reply [Subscribe]
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I am on gc already actually I am switching from my employer after gc because pay is comparatively low and they don’t have much project .
 
Posted on 05-26-20 12:32 PM     [Snapshot: 74]     Reply [Subscribe]
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Either way I think W2 is always better.
 
Posted on 05-26-20 12:53 PM     [Snapshot: 98]     Reply [Subscribe]
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If you are being paid same gross amount, choose w2. If you are being paid more on 1099, you might bring home more as 1099 gives more freedom when filing taxes. Talk to a tax professional on how much more on 1099 will be beneficial for your situation.
 
Posted on 05-26-20 1:13 PM     [Snapshot: 103]     Reply [Subscribe]
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lots of advantages and disadvantages. Mostly depends on the rate difference.
On a 1099 you should open at least a LLC so you can deduct your mileage and track business expenses. You can deduct your healthcare costs as well at create a tax advantaged SEP ira which allows you to put 25 percent of net profits for retirement. That too at the end of tax filing date.
Tax wise you will have to pay both employee and employer portions. Best to pay taxes quarterly so you avoid interest if calculations are off.

W2 is w2, simple enough.
 
Posted on 05-26-20 8:30 PM     [Snapshot: 250]     Reply [Subscribe]
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Depends on what kind of benefit you get on w2 like PTO, sick leave, health insurance, life insurance , 401k match etc. Add approx cost of all those benefit, plus social security and Medicare tax included payroll tax of employer side.

Your income on 1099 should be higher then w2 salary, benefit plus taxes to pick 1099 employment . If you do 1099 you will have some leverage while doing taxes.
 


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