Which is preferable for a college student working part time, 1099 or W-2? Currently I'm a regular W-2 employee at a golf course and I get minimum wage. I just got hired at another place to try it out for a couple weeks and I'll be a 1099 employee. From my quick research 1099's have more flexibility but pay more in taxes and have less benefits. I'm living with my parents so I don't care about benefits because I'm under their insurance. I'll be starting out at the same wage but apparently get bonuses and raises if I'm a good worker, according to the guy who hired me. Which is better for a college student with almost no bills?
>>18242680
a 1099 is a form you use your W2 to fill out for the IRS.
>>18242734
I think some people use it to differentiate between an independent contractor and an actual employee and I find it stupid. just spell it out in english instead of using this shit.
>>18242680
If you get a 1099 instead of a W2, it means you're a private contractor rather than an employee. With a 1099 you have to pay all the taxes that your employer would otherwise pay, and you're not eligible for the EITC, which gives you back all of your money if you make less than ~15,000 in a year. If you're making 10-15k this is a huge deal, because it's the difference between losing 30% of your paycheck or keeping the whole thing. If you're making 30k+, you'll be paying a thousand or two more, but that's a difference of 3% of your earnings rather than 30%.
>>18242734
You're thinking of 1040.
1099 is independent contractor, meaning the company owes you nothing except your commissions. They don't withhold taxes, so you'll have to withhold them yourself. Other than that, differences are a case-by-case basis. If you tell me what each job is, I can give you actual advice.
being an actual employee who gets a w-2 is much better.
>>18242760
yup. I sure am.
>>18242760
I'd be working part time 20-30 hours a week and start at $10 an hour. He said I may get small bonuses occasionally and small raises after enough time. But let's say I make less than 15,000 this year working at this job, are you saying I'd lose 30% of that?
>>18242762
Basically I'm checking and packaging jewelry to ship through Amazon. I would start at $10 an hour and apparently get small bonuses if they see I'm a good worker, (let's $20-50 every check). I'd get to choose my hours and have a much smaller commute which makes the job attractive but would I be screwing myself by paying extra taxes?>>18242763
Why? In your opinion?