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
I highly doubt as a receptionist that they can legally make you a 1099 contractor. One of the tests to see if you should be a 1099 contractor or a w2 employee is if you set your own hours.
Since I assume they control when you are at your desk to actually perform your receptionist job, you are not a 1099.
As a 1099, they get to avoid their half of the taxes (taxes paid by you instead. ), they don’t have to give you employee benifits, and don’t have to do your withholding for you, so be sure to pay your quarterly estimated taxes and probably still owe taxes at the end of the year.
1099 positions tend to pay more hourly to make up for all the perks of being an actual employee you lose, but they better be paying a VERY nice hourly wage to be worth letting them illegally screw you over in other areas.
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