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Subject:Re: 1099 or W2? From:Barb Philbrick <caslonsvcs -at- IBM -dot- NET> Date:Mon, 19 Oct 1998 12:15:21 GMT
I was finding it to be increasingly difficult to get 1099 work, so I
incorporated.
Before incorporating, I preferred 1099 to W-2 because:
* I don't mind handling my own taxes.
* I could command a higher rate.
* I was less beholden to the company (and could point to the IRS
guidelines on contractor vs. employee to back me up)
* I always had a few 1099 clients, so mixing in a W-2 was a pain.
1099 does allow you to take deductions, which is probably the tax
benefit you're mentioning. However, the biggest benefit is getting a
higher rate because you deal with the paperwork and the employer's
half of the Social Security tax.
Regards,
Barb
>A quick question. What's the current thought on contracting as a 1099
>vs. W2 employee? I know 1099 has certain tax benefits (and headaches),
>but are there other issues I'm missing? Are the tax benefits worth the
>hassle?
>
>Thanks in advance,
>
>John K.
>www.helpdocs.com
Barbara Philbrick, Caslon Services Inc.
Technical Writing. caslonsvcs -at- ibm -dot- net
Cleveland, OH
