Anyone familiar with the new 1099 tax laws? or W2 vs. 1099 benefit comparisons or disadvantages? This is unfamiliar territory-- and this new job offer--- is giving me the option to choose by Tuesday, July 14th...
Appreciate any and all advice you woul dhave on this subject!
Cheers,
Thomas Saving Changes...
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Mark Price PerryBusiness Driven PMO Evangelist| BOT InternationalOrlando, Fl, United States
Hi Thomas, great post. Some folks dread 1099; others actually prefer it. To make a 1009 vs W2 decision, there are a number of factors that come into play such as:
How long do you expect to work for the hiring organization?
Will your role and work for the organization be full time and exclusive? For example, no work elsewhere.
How much professional freedom do you want?
Do you want tax withheld from your paycheck or do you prefer to manage your tax obligations directly?
What is your long term career strategy? For example, have your own business or work for an organization?
Does being a 1099 for the organization preclude you from any activities such as decision making or training?
Do you want benefits to be provided through your employer?
Or, would you rather fund you own benefits and be compensated more as a 1099 in consideration of that?
As always, you would be best served by meeting with a professional accountant that can advise you the wide range of considerations. My advice, at a very high level, would be... if you want and are ready to have and grow your own business, then choose the 1099 option. If you want to work for someone else as an employee, then choose the W2 option. Congrats on having an option..! And good luck..! Feel free to contact me at gantthead or directly to discuss. Saving Changes...
Mark-- I appreciate the quick response-- but I would like to reply privately or a 10min phone call might save us both alot of time depending. Your questions were good--- however, it was not apparent to me the outcome of either way of answering it e.g. if this-- then that. You know what I mean?
E-mail me please at [email protected] so we can chat offline about this since the questions are personal in nature.
Cheers and chat soon sir,
Thomas
Thomas E. Keenan III Saving Changes...
Steven RomeroCEO| Romero ConsultingPleasant Hill, Ca, United States
Mark did a great job of thoroughly answering your question. Here is a much more blunt response: If you are thanking your lucky stars you have a gig, go W2. If you could take or leave the gig because there are plenty more where this came from, go 1099.
