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by Johnny555 1517 days ago
Yeah, I assumed that was common knowledge, and is one of the reasons 1099 hourly pay is typically greater than W-2 hourly pay. (other reasons include that you don't typically get PTO, health insurance, retirement account, etc)
1 comments
bombcar 1517 days ago
It's common knowledge to those who have been burned by it.

Many haven't yet, and many people can get "tricked" into it - there's a reason the government has to stomp on companies that try to 1099 everyone.

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Johnny555 1517 days ago
Doesn't that apply to all sorts of employee compensation? ISO's vs RSU's, employee stock purchase/matching programs, PTO options ("unlimited PTO" in particular can be bad for the employee), health insurance options, 401k contributions.

All can have big financial impacts to employees, and employees need to understand them before they accept an offer. There's no reason to be surprised by the tax implications of 1099 vs W-2.

1099 isn't necessarily worse than W2, it opens more tax deductions for the employee, but also requires more bookeeping and the employee needs to understand what the difference is.

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bombcar 1516 days ago
Yeah, and many of those things are used by unscrupulous companies to take advantage of those “not in the know”.

It can be hard to find the exact details for comparison which is why it’s good to have contacts in an industry and in an area.

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