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Subject:1099 vs W2 w/agencies From:AnnMacknz <AnnMacknz -at- AOL -dot- COM> Date:Wed, 7 Jan 1998 23:10:12 EST
In a message dated 98-01-07 17:39:15 EST, Susan quoted JLeer:
<< However, your comments regarding working through an agency is more than
simply whose name is being used. It has tax consequences. Almost always the
agency requires that you work under a W2 arrangement. Whereas, 1099 terms
allow you to get the full fee and pay taxes per your own arrangement with
the IRS. >>
I like working through agencies. They do the sales work and I get to do what
I do well, organize and write. But, the quote above is right: tax
consequences for taking a job as a (temporary) employee and having salary and
taxes reported on a W2 form as opposed to working as a (sub)contractor and
receiving a 1099 at the end of the year. So, I cultivate those agencies who
will let me work as a contractor, two of them now in the Milwaukee area.
Every time I talk to an agency, I stress my wish to work as a contractor. I
think, in this tight employment market, they're becoming willing to bend,
especially for those of us who are incorporated as opposed to sole
proprietors.
My $ .02
Cheers Ann
==========================
Ann Mackenzie: AnnMacknz -at- aol -dot- com
TekDoc - Technical Documentation, Inc. in Milwaukee, WI, USA
specializing in software & engineering writing and policies & procedures
