Sandflee

Serious question for the finance savvy

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so my wife was "furloughed" from her former employer back in April. no guarantee in writing of a return to the former office. She has interviewed and will possibly be offered a position as a case manager with a different company (fingers crossed).

 

She would have the ability to work remote on a permanent basis, but is currently is collecting UE. According to the new potential employer she could work as a "Contracted 1099?" for the interim as a trial basis 3 months and apparently it would not effect her UE (can she still collect?). in addition there is the option to go to a 1099 in the future or a W2 employee. Is this accurate, and what would be the pro's and cons of full time as 1099 vs W2

 

Thanks in advance

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Posted (edited) · Report post

Generally, working on a 1099 means no benefits and no taxes, SS, UC, etc withheld.. 

 

Not sure about other States, but is PA you can not collect UC while working under a 1099 contract, or at all..

 

Edited by ByronPA
To say that I'm not financially savvy....

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Just now, ByronPA said:

Generally, working on a 1099 means no benefits and no taxes, SS, UC, etc withheld.. 

 

Not sure about other States, but is PA you can not collect UC while working under a 1099 contract, or at all..

lives in NY

company is in Mass

 

she's under my Benefits 

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No withholding on 1099.  Would look into payroll taxes, not sure what SSI she would pay.  UE typically reduced until earn too much or too many days to collect. 

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don't do it, she will not be eligible for un employment.  

 

the only way she should do it if the rate is double. If you make 60 an hour you charge minimum 120 1099

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8 mins ago, Sandflee said:

ok so if she works on a 1099 and it doesn't work out can she go back to claiming UE?

Here, they base your UC on your highest earning quarter during the previous 12 months prior to getting laid off. Wages made under 1099 contract do not count towards those earnings..

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Biggest advantage of 1099, (self employed, sub contractor), is way more write offs. You still should be paying into ss. Easier to keep taxable income down. 

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1 min ago, ByronPA said:

Here, they base your UC on your highest earning quarter during the previous 12 months prior to getting laid off. Wages made under 1099 contract do not count towards those earnings..

correct but if she took this position she would need to resign from the "furloughed" position

the new employer vs existing is not much of a pay raise

 

i think she is better with a 1099 and no health benefits no?

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14 mins ago, Sandflee said:

ok so if she works on a 1099 and it doesn't work out can she go back to claiming UE?

Nope.

 

If she goes 1099, don't accept less than $1,000 per day for what she's doing. 

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1 min ago, Wayne Tj said:

Nope.

 

If she goes 1099, don't accept less than $1,000 per day for what she's doing. 

she would be a case manager for life insurance policy's 

and the clients are those 60K premium guys. not small fish

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