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catmanager
USA
102 Posts |
 Posted - 09/12/2003 : 13:53:10
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Topic designed to enlighten/educate everyone that might benefit. I've worked both ways, but it has been awhile (Hurricane Fran)since I've worked the field under anything but a 1099....
Pros? Cons?
I've heard lately from a trusted source that he qualifies for a great percentage amount (comparable or exceeding all 1099 vendors) and is treated as a temp employee (NO self-employment tax!)
It seems that combo alone qualifies as a significant increase in the take home pay and tax benefits come April 15th... |
Edited by - catmanager on 09/12/2003 13:54:04 |
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Ghostbuster
476 Posts |
Posted - 09/12/2003 : 16:55:01
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| Your status as either a W-2 or a 1099 depends mostly on what carrier you wind up at AND if you have set yourself up as a business entity with a tax number. |
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catmanager
USA
102 Posts |
Posted - 09/12/2003 : 17:13:55
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| I guessed there was more to it. Too late for this year I imagine. I guess there is probably some off-setting type of tax that would be owed that probably offsets the benefit of not having to pay SE tax? I apologize, this has probably been covered in a prior forum topic, but hey, just trying to get everything together for the upcoming storm and have more than enough time!! |
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catmanager
USA
102 Posts |
Posted - 09/13/2003 : 08:54:41
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| Well, I should have read the archives, seems to have been discussed before. Due to lack of response, maybe this topic should be removed....Even in the archives, though, there are still a lot of questions answered. Different tax consultants probably give different advice anyway as to the best strategy. Oh Well! |
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Ghostbuster
476 Posts |
Posted - 09/13/2003 : 14:37:28
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OH! If it's strategy you want, we can fix you up, right quick!
Kile and Ted and Clayton will back me up on this one...
1) Be born with a silver spoon in your mouth. Stainless steel or a plastic spork just will not do... you must be the instant inheritor of at least several millions of dollar$.
2) Don't blow it on red heads, fancy houses, or any of the other temptations.
3) Live cheaply.
Or, 4) Hit the Big Lotto and repeat steps 2) and 3).
There, that's your strategy. |
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TedPasan
82 Posts |
Posted - 09/13/2003 : 14:56:06
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Gee Ghost, you would think that with all the expert hurricane predictors around here with their swami cystal balls and ouiji boards and black cat bones, that it would be much easier and more simple to pick out those correct 6 little white and red balls to win the big Powerball Jackpot than to predict what a little lady like Isabel might do. (Isn't Isabel a French name? What's up with 'that'?)
Just think, pick the right 6 and no more steep and high roofs in that blistering west Texas heat...And no worries about OSHA either!
It's my only hope. I think I was born with a foot in my mouth.
BTW. What do you have against carrot tops? |
Edited by - TedPasan on 09/13/2003 15:02:43 |
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catmanager
USA
102 Posts |
Posted - 09/13/2003 : 16:02:53
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| OK, just got back from the store and have $5 of powerball tickets...... |
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Bill Hill
USA
10 Posts |
Posted - 09/14/2003 : 10:00:17
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| I've worked both ways and in the same tax year too. As with anything, there are +'s and -'s. Personally I like to handle my own cash flow even if there is additional tax (S/E tax). I find the withholding entirely too much under a W-2 system. BUT as ghostbuster says the choice may not always be yours to make. |
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Todd_Summers
USA
69 Posts |
Posted - 09/14/2003 : 11:13:32
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Marc, you forgot to mention the FICA match. If your w-2 vendor matches your FICA, ( Eberls is the only one that I know of)... this adds another 7% to your 65% cut.
Let's see... 1099 / 60% / less self-employment tax / owe all taxes come tax time or ....
W-2 / temporary employee / E & O and W/C provided / FICA matched (7%) / no self employment tax / potential tax REFUND...
You decide
Oh and Bill, you can somewhat control the withholding when you fill out the W-4 regarding dependents etc. |
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catmanager
USA
102 Posts |
Posted - 09/14/2003 : 12:10:27
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| Thanks, Todd. Will the W-2 vendors all please raise their hands? |
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Temporary Employee or 1099?
Forum Locked
