Sandflee

Serious question for the finance savvy

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34 posts in this topic

2 mins ago, Sandflee said:

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

Do you mean what she's getting on UC now, or her old job? I'm not poo pooing working under a 1099, but understand if she does that for a year and the job ends, she probably will not qualify for UC.. Lots of stuff to consider.. Companies save a bunch of money by paying under a 1099, so keep that in mind when negotiating...

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13 mins ago, ByronPA said:

Do you mean what she's getting on UC now, or her old job? I'm not poo pooing working under a 1099, but understand if she does that for a year and the job ends, she probably will not qualify for UC.. Lots of stuff to consider.. Companies save a bunch of money by paying under a 1099, so keep that in mind when negotiating...

understood lots to think about, growth potential in the "new" company is huge

and after 3 months if it worked out which i'm confident it would because she kicks ass at what she does would go W2

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As a 1099, she'd essentially be paying employee and employer taxes.  Think outside of Healthcare when we say no benefits. That means no PTO, no sick days, no vacation, no 401K match, etc.

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Posted (edited) · Report post

1099 workers are typically not allowed to claim UE, however currently in NY because of Covid19 exceptions have been made. 1099 workers get 182 bucks a week UE no matter how much you actually earn, plust the 600 in PUA  until July 31. After that who knows if 1099 workers will be able to collect. Switching from W2 to 1099 also requires you to file quarterly. Working freelance is not great unless you are making big money. 

Edited by slowroller

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The rules have recently changed for 1099 workers to collect Unemployment Insurance. Self employed person can now collect unemployment. Check with someone to see if that change is permanent or temporary. If she goes 1099 she will have to pay FICA (social security) tax at the "self-employed" rate, which is less than the combined rate on w-2 employees. IIRC  its about 9%. She will be eligible for lots of additional deductions, like a home office, maybe use of her car, office supplies, etc. etc. Generally  the per hour rate for a 1099 workers is much higher than for a W-2 worker, since there are no benefits and the employers also save on social security taxes.

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3 mins ago, MakoMike said:

Generally  the per hour rate for a 1099 workers is much higher than for a W-2 worker, since there are no benefits and the employers also save on social security taxes.

Having done both, I try to shoot for 30-40% more for 1099 work.

Having a day rate vs hourly helps.

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14 hours ago, webfoot44 said:

With a 1099 she would be responsible for paying her own taxes and social security. 

Quarterly payments to both the state and feds unless exempted.  My son is 1st mate on a scallop boat out of Mass - self employed contractor, lives in NJ.  He's exempt from fed quarterlies but must make quarterly payments to Mass or pay a penalty.  Deducts mileage, tolls, and supplies off his gross but pays SS and taxes on the rest.  What do the accountants say?  

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Call an accountant.  You’ll will need one anyway to do the quarterlies, might as well get started on the right track. 

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38 mins ago, Cpalms said:

Call an accountant.  You’ll will need one anyway to do the quarterlies, might as well get started on the right track. 

They are not that hard, did them myself for years.

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Posted (edited) · Report post

Strange stuff.....

Just opened a check from my IRA for 11500.

Strange....but i did a rool over in one account which is like 400000.

Hey, i will take it.....it is my money after all.

I am in the money...

:howdy:

Edited by CATCHnRELEASE

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