1099 or W2 ?

[frenchy75015]

I am a sales rep in Nevada, tired to be a w2 employe, I want more freedom. I sell wine and I am on commission base. I am single no kids 52years old

On W2 I made 8.5% for my annual sales between $65000 and $120000

The offer from the employer is to give me 10% but I will be on 1099.

Which one is the best?

I feel 10% is not enough to cover the same amount for taxes, what is the % I should ask to pay the same amount of taxes?

What type of accounting I need and How much it will cost me/years in average?

Thank you

 

[cbg]

Legally, it's not up to either you or the employer. If you qualify to be an independent contractor, then he can either treat you as an IC and provide a 1099, or treat you as an employee and provide a W2. But if you do not qualify as an IC and meet the definition of an employee, then the employer would be in violation of the law to treat you as an IC.

 

[TheGeekess]

I am a sales rep in Nevada, tired to be a w2 employe, I want more freedom. I sell wine and I am on commission base. I am single no kids 52years old

On W2 I made 8.5% for my annual sales between $65000 and $120000

The offer from the employer is to give me 10% but I will be on 1099.

Which one is the best?

I feel 10% is not enough to cover the same amount for taxes, what is the % I should ask to pay the same amount of taxes?

What type of accounting I need and How much it will cost me/years in average?

Thank you

This is a question only your accountant can answer.

 

[frenchy75015]

Legally, it's not up to either you or the employer. If you qualify to be an independent contractor, then he can either treat you as an IC and provide a 1099, or treat you as an employee and provide a W2. But if you do not qualify as an IC and meet the definition of an employee, then the employer would be in violation of the law to treat you as an IC.

Actually, I am living to get another job who will be similar to the old one. But I don't want somebody to tell me what to do and this new "customer" will take me on 1099.

 

[frenchy75015]

This is a question only your accountant can answer.

Thank you, I guess I have to go on a accounting forum…

 

[davew128]

Thank you, I guess I have to go on a accounting forum…

You will get the same answer.

A) Its not an accounting question
B) Its a matter of the law being applied to facts.

One does not get to choose if they are an employee or a contractor.

In some states (not sure about Nevada), the employer can face criminal sanctions for improperly classifying employees as contractors. Do what's right, not what's more advantageous.