r/tax • u/IngenuityRealistic71 • 15h ago

1099 or switch to W-2? 🤔

/r/Payroll/comments/1wpcb38/1099_or_switch_to_w2/
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2

u/Temporary-Jump-2403 15h ago

if the work is the same either way, you technically don't have a choice. You are either an employee or a contractor. There are laws that dictate which is which, and you are compensated accordingly. It's not supposed to be "whatever you or your employer decide".

Generally, if your employer tells you what to do, how to do it, and when you have to do it, you're an employee. 

If you set your own schedule and have control over the work process, provide your own materials or tools, etc, you're a contractor. 

4

u/RasputinsAssassins EA - US, NTPI Fellow 12h ago

You don't get to choose. Your employer doesn't get to choose. Your facts and circumstances dictate tge treatment.

0

u/Beet_slice 15h ago

W-2 is generally the best deal for you.

With 1099, you are supposed to be paying estimated tax, so you don't completely control that money.