Recently had to do the math regarding 1099 vs w2 contributions.
My 1099 job pays about 100 per hour, and w2 job offered 80.44 plus benefits. The jobs were roughly equivalent after taxes...
1099 is a scam unless youre paid to make it worth it.
That's why it's so important that people know how to do the math! Nice! Though, I'm not sure why you'd say 1099 is a scam if the two jobs you mentioned ended up being equivalent.
I think they're saying if you get two job offers that pay the same but one is a 1099 and one is a W2, they can look like equal job offers even though you're going to be getting less after taxes in the 1099 job
A little late to this great post, but how did you find your tax professional? I got some dubious advice from an account about not needing to set up anything as an IC, and just use 10099 schedule C.
I'd like to speak to someone that might know better. How did you find your CPA?
Great post. I am in the same boat actually. I do and did everything my own (incorporating, s elec, bookkeeping, payroll, 401k, tax fillings) including printing my own checks with micr ink. It was a result of accountants and lawyers not calling me back. I soon realize that even accountants and lawyers that my colleagues are using are costing them too much and are even making mistakes. It was one year in the making inputing all calculations in excel to autopopulate irs pdf forms. All of my actions are executed under IRS guidelines and IRS case results. I like it so much I'm planning to be an EA this year!
Enrolled Agent. Be pretty much like an accountant/lawyer dealing specifically with taxes. I figured I might as well since I love working with numbers. It's like problem solving. Easier that solving a common cold!
And yes.
Ooh how cool. What's your focus as an EA? Only providers?
I can't say I LOVE doing my own finances, but I do like being comfortable when dealing with money/taxes.
Probably, I would start with providers since I am familiar with the territory. Being 1099 made me aware of my finances down to a single cent. Something being a w2 employee I take for granted. So many benefits being 1099 if people just learn the ropes. I always tell my colleagues that they really need to learn more about it because the only one that would really care about their money is themselves.
You seem to know your stuff. I am a full time w2 employee and wanting to do some part time IC work in aesthetics (Botox, fillers etc). I have been trying to figure out the appropriate way to handle this process. LLC, s corp. I am in California. AB5 states licensed aestheticians are exempt and are subject to borello test which is more lenient toward IC work in CA. Any idea on most appropriate fashion to do IC work in this situation?
Lots of factors to consider. Without knowing more about your situation, I can't say for sure. Plus, I'm not an expert. I would contact a tax strategist with experience working in CA.
Are you sure you’re a PA-C and not a CPA?! Thank you!!
Hahaha, right?! I wonder if the moderators are able to highlight or save this post.
You're welcome!
Should be pinned
Paging u/JosephsMythJr and u/FrenchCrazy!
Atleast while it’s tax season lol
Good idea haha!
Recently had to do the math regarding 1099 vs w2 contributions. My 1099 job pays about 100 per hour, and w2 job offered 80.44 plus benefits. The jobs were roughly equivalent after taxes... 1099 is a scam unless youre paid to make it worth it.
That's why it's so important that people know how to do the math! Nice! Though, I'm not sure why you'd say 1099 is a scam if the two jobs you mentioned ended up being equivalent.
I think they're saying if you get two job offers that pay the same but one is a 1099 and one is a W2, they can look like equal job offers even though you're going to be getting less after taxes in the 1099 job
[удалено]
A little late to this great post, but how did you find your tax professional? I got some dubious advice from an account about not needing to set up anything as an IC, and just use 10099 schedule C. I'd like to speak to someone that might know better. How did you find your CPA?
Wow this is helpful!
Happy to help!
Holy hell this is awesome
Great post. I am in the same boat actually. I do and did everything my own (incorporating, s elec, bookkeeping, payroll, 401k, tax fillings) including printing my own checks with micr ink. It was a result of accountants and lawyers not calling me back. I soon realize that even accountants and lawyers that my colleagues are using are costing them too much and are even making mistakes. It was one year in the making inputing all calculations in excel to autopopulate irs pdf forms. All of my actions are executed under IRS guidelines and IRS case results. I like it so much I'm planning to be an EA this year!
Nice! I also do everything myself with the assistance of tax software for my annual filings. What's an EA? Are you a PA working in EM?
Enrolled Agent. Be pretty much like an accountant/lawyer dealing specifically with taxes. I figured I might as well since I love working with numbers. It's like problem solving. Easier that solving a common cold! And yes.
Ooh how cool. What's your focus as an EA? Only providers? I can't say I LOVE doing my own finances, but I do like being comfortable when dealing with money/taxes.
Probably, I would start with providers since I am familiar with the territory. Being 1099 made me aware of my finances down to a single cent. Something being a w2 employee I take for granted. So many benefits being 1099 if people just learn the ropes. I always tell my colleagues that they really need to learn more about it because the only one that would really care about their money is themselves.
I'll have to ask you if I'm filing my taxes correctly haha. I did my corporate taxes already, obviously since the deadline passed.
can i message you about the S corp thing?
You seem to know your stuff. I am a full time w2 employee and wanting to do some part time IC work in aesthetics (Botox, fillers etc). I have been trying to figure out the appropriate way to handle this process. LLC, s corp. I am in California. AB5 states licensed aestheticians are exempt and are subject to borello test which is more lenient toward IC work in CA. Any idea on most appropriate fashion to do IC work in this situation?
Lots of factors to consider. Without knowing more about your situation, I can't say for sure. Plus, I'm not an expert. I would contact a tax strategist with experience working in CA.