I won’t work W2 anymore . I have given it some thought and the only real advantage to W2 is some companies will match your 401K contributions.
You can open up a 401K yourself as 1099 but nobody is going to match it
Advantages of 1099
1. Better pay virtually across the board ( if you are a W2 making 2500 a week I’m guessing you are some union member with seniority
2. I can buy whatever health benefits I deem fit . Not accept whatever the company gives me
3. Everything is a tax deduction. I worked 8 months last year… made 71,000 dollars… paid 3300 dollars in taxes .
4. I can tell my company “ hey I’m going to Uruguay for the winter .. be back in 3 months .. and they are like “ okay “
No questions asked
Disadvantages of 1099
1. Nobody to blame except yourself if you get hurt . Can’t sue anybody for money .
2. Nobody to match your 401k .., instead I get that money directly in higher wages
3. Doing TurboTax and getting my accountant mother to help with my complicated taxes Is a headache
4. No PTO . ( even though many W2 companies don’t give any pto worth a damn)
It’s my understanding that W2 lost the per diem deduction . Some companies will let you take a per diem .. but if you don’t take it there is no mechanism by a which a w2 can claim the 68 dollars a day that 1099s are eligible to claim .
Anyway … I think 1099 is the way to go in this climate unless you absolutely must have your matching 401K and PTO.. and just hate doing taxes so much you are willing to lose several thousand dollars over it
