1099 vs W2 - diff in hourly rate?

Hi Matt,

Many contractors charge 50 to 100 percent more. The markup varies based
on expertise, timeline (e.g. long hours to complete the project),
length of project. Companies don't have to pay benefits, payroll taxes,
unemployment, etc. Agencies often markup the rate by 50 to 100%. Also
how long you wait to receive payment comes into play. Hope this helps.
Maya
 >> Stay informed about: 1099 vs W2 - diff in hourly rate? 

hi maya,

i think perhaps i should have been more specific -- i am already used
to working W2 hourly, as a contractor w/ no benefits. just a flat
hourly rate, and i cover my own insurance.

a new contract job wants to do the same, but go 1099 instead of W2.
apples to apples tho, no benefits, insurance, etc. so im just trying to
figure out the quanitative difference between the two.

all bennies aside, the principle difference between 1099 & W2
contracting is matter of splitting the FICO/Social Securitiy taxes.
this amount is 15.3%, and w/ W2 workers is split between the worker and
the employer. going 1099, you pay all of it.

i think i came to a conclusion in another thread. say youre getting
paid $50/hr 1099, to go W2 (hourly; still no bennies) would be like
this:

1) 50 * (15.3% / 2)
2) 50 * .0765 = 3.8
3) 50 - 3.8 = 46.2

....so 50/hr 1099 is equal to about $46.20/hr W2


as i mentioned tho, i am only trying to figure out the hourly amount,
w/o taking into consideration benefits, vacation, insurance, etc. i am
already a W2 hourly contractor and do not have those things provided
for me.

matt
 >> Stay informed about: 1099 vs W2 - diff in hourly rate? 

Matt,

You also might want to consider any difference in the pay schedule. Some
firms want you to wait as much as 60 days before you even bill them .. and
another 30 days to receive payment for your invoice. They "say" 1099, but
they mean Corp to Corp ... just make sure of all of the details around
payment.


<matt RemoveThis @mailinator.com> wrote in message
news:1141770249.048855.119750@j33g2000cwa.googlegroups.com...
> hi maya,
>
> i think perhaps i should have been more specific -- i am already used
> to working W2 hourly, as a contractor w/ no benefits. just a flat
> hourly rate, and i cover my own insurance.
>
> a new contract job wants to do the same, but go 1099 instead of W2.
> apples to apples tho, no benefits, insurance, etc. so im just trying to
> figure out the quanitative difference between the two.
>
> all bennies aside, the principle difference between 1099 & W2
> contracting is matter of splitting the FICO/Social Securitiy taxes.
> this amount is 15.3%, and w/ W2 workers is split between the worker and
> the employer. going 1099, you pay all of it.
>
> i think i came to a conclusion in another thread. say youre getting
> paid $50/hr 1099, to go W2 (hourly; still no bennies) would be like
> this:
>
> 1) 50 * (15.3% / 2)
> 2) 50 * .0765 = 3.8
> 3) 50 - 3.8 = 46.2
>
> ...so 50/hr 1099 is equal to about $46.20/hr W2
>
>
> as i mentioned tho, i am only trying to figure out the hourly amount,
> w/o taking into consideration benefits, vacation, insurance, etc. i am
> already a W2 hourly contractor and do not have those things provided
> for me.
>
> matt
>
>
 >> Stay informed about: 1099 vs W2 - diff in hourly rate?