![]() Contact us today for a free tax consultation, and find out how we can save you money. We have a tool that will calculate the tax savings you will make by switching to a 1099 contractor and structuring your business efficiently. If you are a W2 employee that is considering making the switch to 1099, but want to know how it will affect your income and taxes, you are in the right place. Make a point of reviewing your financial reports on a regular basis. ![]() Software like QuickBooks Online and QuickBooks Self-Employed make it easy to invoice your clients and deal with all of your expenses as they happen. Whatever the case may be, it is important to consider your options carefully. Have a system in place to track everything from your income to your expenses and even your sales taxes. When you hire a W2 employee, you are locking a person into a contract that improves their commitment to your organization, offers more continuity in employment, and allows for greater control over working hours and conditions. If you desire more job security and like a regular routine, working as an employee would be more suited to you. If you desire more freedom to make your own decisions on projects, hours and who you work with, being an independent contractor would be right up your alley. In the end, which is best for you is dependent on your desires and goals for your employment future. The amount of money that comes into your business’ account during the year is not what you actually earn. This is different when you are self-employed. ![]() 2) Describe the benefits from your services. The differences between being an independent contractor versus being an employee are quite significant. You receive a salary or an hourly wage and the total amount of that compensation is reported on your W2 at the end of the year. Tips to convince your clients to outsource and hire you as a freelancer. So, should you choose 1099 or W-2? To help you better determine your decision, we will be doing a comparison of being an employee versus being an independent contractor. Ultimately, it depends on your desires and priorities for yourself. How do you make the right decision? There are so many differences between the two options, and what you decide can have a significant impact on your life and financial situation. You’ve probably been in this situation before: you are offered a new job and while you are negotiating the terms of your employment, you are given the option of working as a 1099 contractor or as a W-2 employee.
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