W2 Vs 1099 employment? Tell me the pros vs the cons of each.

If you own the truck, then 1099.
If they own it then W2..
I’m not sure why people can’t figure this out.

 

W2 all the way but I understand how 1099 can be tempting sometimes. I heard of few drivers making $2500-$3000 a week on 1099 in Chicago.

 

That 15% social security bill is great at tax time too.

 

Only tempting to people that can't do math. Same as lottery tickets.

That W2 "loss" of income is made up for in benefits, and company halving FICA and social security.

 

The IRS came into the last company I worked at and told all the drivers exactly this;

“there is no scenario where you drive a vehicle thats owned/rented/leased by the company to which you pay nothing toward its operational costs and be legally classified as an independent contractor, none.”

 

If your dodging paying your past due taxes to the IRS, 1099 is great. They can’t garnish your check like a W-2. They can seize your personal property, do a non wage garnishment and Of course they can put a tax lien on you that will cripple your credit forever…
And you will be digging a very deep hole even deeper…

 

There's also the minor inconvenience of prison.

 

Only for perjury .
Or filing a false return.

There is no prison time for filing an accurate return and just not paying the taxes.

 

And the penalties and interest that rival borrowing from the Mob. But on a bright point, the IRS won’t break your legs for the money…