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0 pointscpncrunch9y ago0 comments

>it should be noted that $16/hour as 1099 income is not at all the same thing as $16/hour as a regular W2 employee. A rough equivalent would be about $11/hour.

Not quite. You only take off some of the employment taxes, not the income taxes (which you would still have to pay as a regular W2 employee). It will likely only be about a dollar an hour or so.

However the advantage of being self-employed is that you can deduct expenses such as fuel. (Which brings up another point...fuel will need to be considered when calculating net income).

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tyingq9y ago

>Not quite. You only take off some of the employment taxes, not the income taxes

My quick+dirty calculation accounted for just the net added self-employment taxes, plus other differences like state unemployment, employer's share of health insurance, sick days, etc.

dragonwriter9y ago

> However the advantage of being self-employed is that you can deduct expenses such as fuel.

No, its not. If those expenses aren't reimbursed by your employer (which often they are), you can deduct them as a W-2 employee, as well, so there is no benefit on that point to being a 1099 contractor vs. a W-2 employee.

toomuchtodo9y ago

You can only deduct those expenses as a W-2 employee if you itemize vs taking the standard deduction. Most people don't itemize.

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