Hello, I have been working as a 1099 Employee for a couple of years now. My boss treats me like an employee but pays me as a 1099. He keeps promising to make me W2, but that never happens. I received a job offer as a W2 employee but about $15,000 less per year. It has full benefits pluse 401K. I'm considering taking the job as it has growth potential.Should I take the new job ? Thank you

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How big a percentage is the $15k cut? And is there 401k match for the new job?

Regardless, it seems like a no-brainer though. I would take it.

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It's about a 15% pay cut, from $98,000 to $85,000 annually. And there is a 401K match of about 4%.

I’m not sure of your numbers, but I would consider the idea that the salary cut will probably be made up by those benefits, not to mention potential growth. And if it’s been a couple of years of unfilled promises, not sure when that would change.

Be a damned shame if you took the new job and then the state workforce commission (and IRS) were to look into their business.

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When comparing 1099 and W2 I require that a 1099 role pay 2X what a W2 role would. If your pay rate isn’t less by half it’s probably a good move.

Also, you would be amazed how often an employer is sideways with the applicable IRS regs when they have someone as a 1099.

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