I am getting a contract job offer. There are two options: take W2 or 1099 as a Corp. What would be best deal?

Question

I have registered an LLC company with State of Maryland.

Answer 1

I would take the 1099 and pay your own quarterly taxes. You will have more control of the money that way.

Answer 2

This is usually not an either or question. Your state has a definition of what an employee is and if you are an employee, under that definition, then they are required to give you a W2 and pay payroll taxes. Some employers try and cheat the system by hiring "contract employees" so they don't have to pay payroll taxes or provide employee benefits such as health insurance or worker's comp coverage if you get hurt. You also have virtually no protection from firing or unemployment benefits if they let you go. Being a contractor also means they don't withhold taxes, but you will be responsible for paying quarterly taxes, which many people don't have the discipline to do.

Answer 3

When you are paid via 1099 you have to match your own social security and medicare tax and don't have any other benefits the company offers. So, if you do take a 1099 offer, make sure it is quite a bit higher pay then the w-2 offer.

Answer 4

1099 give you control of ALL the money. W-2 requires some withholding. I'd go with 1099, just to keep control over my money. But I don't know what your tax rate in MD is, or how much money your are expecting to earn this year. Not enough info to decide.

Answer 5

Be aware that if you do a W2, you don't have to pay both sides of social security. A 1099 requires you to pay taxes your employer would normally pay part of.

Answer 6

1099 . Less dinero out of your earnings

Answer 7

Take the W2. If not you'll pay twice the SSI

Answer 8

im not sure