My new job said they pay 1099 and asked if i’m ok with that. I have no idea what that means or the difference it makes. From what i’ve read it seems like I will have to pay everything back during tax season? I’m so confused. This is a receptionist job paying hourly wage. Please explain
In: Economics
1099 is for contractors/freelancers. This means you get paid in full and the employer doesn’t take taxes out. For example, if they pay $10 an hour for 40 hours each week, you get a check for $400 for the week but it is your responsibility to pay the taxes on your own This also means they don’t give you benefits, paid time off, insurance, etc. A normal w2 job would take taxes out and they are legally required to offer insurance. Since they take taxes out, your check might only be $330 instead of the full $400 at the same $10 rate.
With that being said, what they are doing is illegal and a red flag. Do not take this job and report it to the department of labor.
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