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Subject:Re: Pay rate for contractor with no experience From:Jo Francis Byrd <jbyrd -at- byrdwrites -dot- com> To:Win Day <winday -at- home -dot- com> Date:Wed, 16 Feb 2000 10:08:09 -0600
If I'm paid on a 1099, I am responsible for paying all the taxes to IRS
(Internal Revenue Service, also known as "Infernal" Revenue Service). I get the
full gross amount of my earnings. On a 1099 I am not entitled to any company
supplied benefits.
If I'm paid on a W-2, the agency takes out all the appropriate taxes and I get
the net amount. If' I'm on a W-2, I MAY (operative word, here) be eligible for
benefits such as a 401(k) (it's a tax-deferred retirement account), medical
benefits, life insurance, etc.
Jo
Win Day wrote:
> At 11:54 AM 2/15/00 -0600, Jo Francis Byrd wrote:
> Dallas....and several contracts ago I earned $42/hour on a W-2. Whatever my
> rate, I always up the rate $5/hour when I work a 1099. While, if I'm working
> on a W-2, I always take advantage of any 401(k) plans the shop may have, I
> have my own benefits, so never take those.
>
>
> Okay, I'll show my Canadian-based ignorance.
>
> What's the difference between a W-2 contract and a 1099 contract?
>
> Win
