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Subject:Re: QUESTION: W-2 vs. 1099 Hourly Rates From:"Wilcox, John (WWC, Contractor)" <wilcoxj -at- WDNI -dot- COM> Date:Tue, 23 Dec 1997 09:28:00 -0800
... it seems like the only other
difference between the two is that with the W-2, the contracting company
agency takes out taxes, whereas with a 1099 you take out your own.
With the 1099, you'll have to pay the following yourself:
6.2% your share of FICA
8.2% what should have been the company's share of FICA
plus you won't have any disability insurance, for which the company
normally would have taken out -- typically 1% or less, varies according
to industry, mine's .7%.