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Most of the responses to this question have not mentioned that if you are
paid on a W2, the employer (contracting agency) pays the employee's portion
of the Social Security/Medicare tax which is 7.65%
If you are paid on a 1099, you pay both portions or 15.3% on your gross
wages when you submit your taxes by quarterly estimated payments.
Essentially, this means that if your pay rate is the same between a position
paying by W2 or 1099, you are earning less taking the 1099 rate.
The discussion above does not figure in any other benefits.
