![]() Contact us today for a free tax consultation, and find out how we can save you money. We have a tool that will calculate the tax savings you will make by switching to a 1099 contractor and structuring your business efficiently. If you are a W2 employee that is considering making the switch to 1099, but want to know how it will affect your income and taxes, you are in the right place. Whatever the case may be, it is important to consider your options carefully. If you desire more job security and like a regular routine, working as an employee would be more suited to you. If you desire more freedom to make your own decisions on projects, hours and who you work with, being an independent contractor would be right up your alley. In the end, which is best for you is dependent on your desires and goals for your employment future. The amount of money that comes into your business’ account during the year is not what you actually earn. ![]() This is different when you are self-employed. If you make 100k as an employee, how much do you need to make as a freelancer And given all the trade-offs, is it worth it At first, the question appears. The differences between being an independent contractor versus being an employee are quite significant. You receive a salary or an hourly wage and the total amount of that compensation is reported on your W2 at the end of the year. So, should you choose 1099 or W-2? To help you better determine your decision, we will be doing a comparison of being an employee versus being an independent contractor. Ultimately, it depends on your desires and priorities for yourself. ![]() and you will be paid like a temporary employee on a W-2 tax basis. If you do gig work as an employee, your employer should withhold tax from your paycheck. Your title might be consultant, contractor, freelancer, or senior analyst. You must pay tax on income you earn from gig work. How do you make the right decision? There are so many differences between the two options, and what you decide can have a significant impact on your life and financial situation. You must file a tax return if you have net earnings from self-employment of 400 or more from gig work, even if its a side job, part-time or temporary. You’ve probably been in this situation before: you are offered a new job and while you are negotiating the terms of your employment, you are given the option of working as a 1099 contractor or as a W-2 employee.
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