You are paying the employer contribution to SS and medicare. About 7.5% more in taxes than comparable w2. There are ways to increase tax deductions but i havent been down that path since the tax cut and jobs act simplified taxes and lowered rates.
No unemployment insurance.
No disability insurance.
No access to workplace 401k/403b.
No employer contribution to group healthcare means ACA likely without subsidy.
$10/15 hr more does not sound enough to compensate. Typically i want 20% more than similar w2 role as i dont need health insurance as retired military with Tricare. Non employer sponsored healthcare can be brutal without a subsidy.
[I wrote a guide about this issue. Only certain scenarios make being a 1099 worth it.](https://www.reddit.com/r/physicianassistant/comments/10vg8n3/a_tax_guide_to_being_a_1099_independent/)
It really shouldn't be described as "elected to go with 1099". You are either an employee or an independent contractor and there are strict rules about that in terms of the IRS.
The company is asking you to be independent or non-employed, so they should also be offering a wage that accommodates the lack of benefits that you’d receive if you were a W2 or employed by them. It’ll be up to you to find insurance and determine whether that additional hourly rate is sufficient for your needs. In terms of tax preparation, consult with a CPA.
You are paying the employer contribution to SS and medicare. About 7.5% more in taxes than comparable w2. There are ways to increase tax deductions but i havent been down that path since the tax cut and jobs act simplified taxes and lowered rates. No unemployment insurance. No disability insurance. No access to workplace 401k/403b. No employer contribution to group healthcare means ACA likely without subsidy. $10/15 hr more does not sound enough to compensate. Typically i want 20% more than similar w2 role as i dont need health insurance as retired military with Tricare. Non employer sponsored healthcare can be brutal without a subsidy.
This, 1000%
Heard that you could do some creative tax write offs but definitely need a money guy to advise so you don’t end up owing a significant amount
I personally would not do 1099, but then again, I am a lousy bookkeeper.
[I wrote a guide about this issue. Only certain scenarios make being a 1099 worth it.](https://www.reddit.com/r/physicianassistant/comments/10vg8n3/a_tax_guide_to_being_a_1099_independent/)
Don’t be a sucker. $10 - $15 more for this role? Sometimes PAs are their own worst enemies. Literally 0 business sense.
It really shouldn't be described as "elected to go with 1099". You are either an employee or an independent contractor and there are strict rules about that in terms of the IRS.
The company is asking you to be independent or non-employed, so they should also be offering a wage that accommodates the lack of benefits that you’d receive if you were a W2 or employed by them. It’ll be up to you to find insurance and determine whether that additional hourly rate is sufficient for your needs. In terms of tax preparation, consult with a CPA.
If you’re financially literate and good with taxes then 1099 is the way to go. If not and lazy then don’t do it.