1099

buzzarddriver · Jul 26, 2016

Ok, but what is the hourly rate for similar jobs in your area working off a W-2? Between the various income taxes, both Federal and State, 15.3% on the Social Security taxes, and whether your state also requires you to pay, your net pay may be around $12-$14/HR.

mpow66m · Jul 26, 2016

its the going rate for the job in my area of northern NJ,actully better than most jobs.but its not worth it,im gonna take a W2 job.thnx for the advice.

Brandonpdx · Jul 27, 2016

justa_driver said: ↑

If you are on W2 pay, you'll pay 7.65 in social security tax, if you are on 1099, you will pay 15.3 social security tax, you wont have workers comp or unemployment insurance as you would on W2 pay.

As already stated, you don't want to get IRS after you, they will make your life miserable because they can freeze every account you have until you pay what you owe or til you prove you don't owe it. They can also Garnish your wages. Best to pass up 1099 companies. I worked for one when I was young and stupid, will never do it again. Took me about a year to prove I didn't owe the taxes.
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They're actually not that hard to deal with. I owed them a few grand for 2015 which was the first time in my life they didn't owe ME money. They'll give up to 120 day extensions penalty free and will also negotiate payment plans if you need longer than that. But yeah they're one of the few entities out there you definitely DON'T want to play around with. (The State and the Mafia would be the other two.)

Florida Playboy · Jul 27, 2016

Brandonpdx said: ↑

They're actually not that hard to deal with. I owed them a few grand for 2015 which was the first time in my life they didn't owe ME money. They'll give up to 120 day extensions penalty free and will also negotiate payment plans if you need longer than that. But yeah they're one of the few entities out there you definitely DON'T want to play around with. (The State and the Mafia would be the other two.)
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Just make sure you're dealing with the real IRS not the Indian Revenue Scam:

Ooops · Jan 19, 2017

tscottme said: ↑

1099 pay is a way for lower-quality companies to apparently boost their pay to naive drivers. An employer paying the same amount out of his pocket, none to the feds with all going to driver, the driver sees an amount abuot 30% higher than a company driver being paid by his employer on W-2 and taxes paid on his behalf.

There are legitimate 1099 companies but in my experience the worst employers in my area hire drivers fired or ineligible for better companies and they use the 1099/pay-raise scheme.

BTW, NEVER screw the IRS. They will find you and take their pound of flesh. I'd rather steal money from the Mafia. The Mafia can be reasoned with. The IRS will wait until the interest and penalties are maximized and then use the weight of the Federal govt to take whatever they want.
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The Federal Govt is the mafia

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