Financial Residency Coffee & Contracts - 1099 to W2?
Jon discusses the difference between W-2 and 1099 employment statuses and answers common questions related to pay differences and converting from one status to another.
He explains that 1099 independent contractors do not receive benefits and typically have to file taxes on a quarterly basis, resulting in higher taxes. As a general rule, 1099 contractors are paid 10 to 15 percent higher than their W-2 counterparts to account for these additional costs. J
on also mentions that it is possible to switch between the two statuses but emphasizes the importance of understanding the rules and regulations set by employers and the government.
He suggests consulting with a tax advisor and Contract Diagnostics for further guidance on contract negotiations and employment decisions.
LINKS: