Hi All, I am exploring a contract position and they are offering the below. As I am new to contracting, Please suggest which one is better Option 1: $70/hr on W2
Option 2: $80/hr on 1099
I live in the Bay Area, CA if it matters.

Thank you so much !

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W2 unless 1099 is at least 50% higher

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it's a personal choice, BUT i want to note this:
- W2 contract: you are essentially an employee and they handle the taxation on your behalf
- 1099 contract: you are an independent contractor and you have to settle taxes on your own (likely to pay back)

because you're in CA, i know employment laws are a little different so i would factor in that to what works best.

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There are calculators online to compare.
1099 you pay self employment tax & all of your SS, Medicare, basically double. you don’t get paid holidays or vacations or access to group health, dental, vision & Short/long term disability, so factor all that in. Not sure about unemployment benefits.
You should consult with your tax professional If you go 1099, & make quarterly estimates payments to IRS & state. If you work at home you can use home office deduction on your taxes if you itemize.
I’d most likely go W2 in your situation.

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Are they going to be managing you differently? Because an employee is not a contractor and a contractor is not an employee.

Didn't work out. They might have seen this post and ghosted me completely!

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