1099 vs. W2

[jlcl]

What is the name of your state (only U.S. law)? Califorina

I have my own full-time W2 wage job but I'm doing some business consulting work for my husband's S-Corporation. I will be reaching my social security wage base maximum with my full-time job.

Would it be better for my husband's S-Corp to pay me as a 1099 consultant, or should I be hired by him as an employee?

We file joint return. The only thing I can think of is medicare 1.45%. Which, W2 or 1099, for his S-Corp would achieve more tax savings on our joint tax return?

 

[LdiJ]

What is the name of your state (only U.S. law)? Califorina

I have my own full-time W2 wage job but I'm doing some business consulting work for my husband's S-Corporation. I will be reaching my social security wage base maximum with my full-time job.

Would it be better for my husband's S-Corp to pay me as a 1099 consultant, or should I be hired by him as an employee?

We file joint return. The only thing I can think of is medicare 1.45%. Which, W2 or 1099, for his S-Corp would achieve more tax savings on our joint tax return?

Its really not going to make any difference either way, because either way the employer medicare taxes are going to come out of your joint pocket.

 

[jlcl]

Since the medicare doesn't make the difference, would the difference be in as a 1099, the S-Corp doesn't need to pay for unemployment, state disability, state unemployment (in California), etc.? So, it probably makes more sense to be 1099 since I have a full time job and I'm only doing some consulting work for his S-Corp.

 

[LdiJ]

Since the medicare doesn't make the difference, would the difference be in as a 1099, the S-Corp doesn't need to pay for unemployment, state disability, state unemployment (in California), etc.? So, it probably makes more sense to be 1099 since I have a full time job and I'm only doing some consulting work for his S-Corp.

If you can validly be classified as someone who is self employed, that may be the way to go.