1099 vs W2

Never head anyone complain about being paid using a W2 when they are a company driver.

When being paid by W2 you have taxes and Social Security/Medacare deducted from every check so you aren't left owing Uncle Sam a bunch of money come tax time. In addition the employer pays as much into your Social Security/Medacare as you do, it dose not come out of your pay.

1099 is for independent contractors so no taxes are withheld. Anyone paid on 1099 needs to put away money for paying their taxes and ALL of the Social Security/Medacare owed. They should be filing quarterly returns with estimated payments to the IRS as well.

Bottom line is you need to be paid more when paid by 1099 to come out with the same pay as a W2 paid job to make up for the other half of the Social Security/Medacare an employer pays for W2 employees.

 

i only worked for one 1099 employer. i got paid weekly. but another driver had to chase after the employer for his money.

then you MUST set aside money each paycheck for your taxes. it is best to seek a CPA and set up a quarterly state tax payment plan. you get nothing back if you overpay, it just goes towards the next quarter. and you still may OWE taxes at the end of the year. i like getting tax refunds every year, as a W2 employer, i never got a refund as a 1099.

the 1099 is a cheap way for an employer to get out of paying you health benefits, maybe vacations, days off and holidays.

BS, as a worker i deserve time off with pay.

my 2¢ regarding W2 and 1099

 

I've been on both. Never had a problem with 1099.

As long as you are compensated on the high side, 1099 works out beautifully. If they are only paying standard wages,.. then no,.. they are cheating you.

My gross pay averaged $1800 - $2500 when I was on 1099. Bare in mind that approx 33% of that needed to go for taxes. I still made out very well. Made $76k my first year, $92k my second year.



Hurst

 

1099 should be paying at least 33% more than W2.

What are you worth? What is your time and effort worth to you? Are you worth the same as someone else? Less?

You make your deal coming in the door. Dont cry about it later.

If you dont have the experience or skill set,. chances are you are just another duck in the pond. Get your time in the seat,.. master your skill set. Then go after the better paying jobs.

You cant become the CEO with out first putting in the years of effort to earn that title.

Hurst

 

IF you're paid on 1099 and get hurt on the job you're on your own. No workers comp. Get laid off, no unemployment benefits.

 

That's. It true I get a 1099 and I do have workers comp it even pays me 66% of my wages during my times off due to illness or injury

 

Lot's of guys paid on 1099 have no intention of paying taxes and have no intention of living long enough [in the US] to be audited. So, for these, it's a great windfall every pay check as long as they're being paid a decent rate.

Many of them are literally clueless to the US tax legalities aspect of this type of wage. Their boss never mentioned it, and they just got here a few months ago so how would they know? They assume whoever wanted their cut has already taken it. What they receive is theirs to keep.