Short Version: 1099 workers pay 15.3% tax - the Employer AND Employee components; but, can reduce their overall taxable wages. ...
Understanding Self-Employment FICA Taxes for 1099 Workers
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1099 vs W2
Short Version:
This website is for anyone interested in understanding the difference between two employment types … contractor (1099) vs. salaried (W2) employment. If you are here for our calculator to help compare job offers, click here.
Long Version:
Most job-seekers find our calculator extremely helpful for comparing different job offers as it is far superior to any other on the web. We’ve found that our calculator actually sparks increased curiosity about various tax implications. We provide many articles to assist your learning journey. What differentiates us from others is that we use a Short Version / Long Version format throughout our entire site. Most people want the SHORT VERSION – a quick synopsis of a subject; for example, the definition of a term and how it is generally calculated. If you are further curious you can read the LONG VERSION for all the intricate details – such as what income brackets are excluded, what is the history of a term, and any nuances to the term. We hope you will love this revolutionary format!
BONUS: You will also notice our pages don’t have advertising. We hope that our calculator, high quality articles, and timely news posts will encourage you to support our site by visiting our Resources page for your tax preparation needs. Whether you will have 1099 or W2 income, go there to see many tools (Books, Software, Services) to assist with your tax preparation – in many cases, we will receive affiliate commissions. We partner with most name-brand tax vendors.
Disclaimer: Here it comes 🙂 We are not a tax preparation service, nor professional advisors. We try to provide accurate information; however, information can change at any moment. Furthermore, each individual has unique tax circumstances. Consult a tax professional for your specific needs. Also, 1099vsW2.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a way for websites to earn advertising revenues by advertising and linking to Amazon.com
Maximizing Employee Benefits: A Comprehensive Guide to Flexible Spending Accounts (FSA)
Short Version: Put aside pre-tax dollars to pay for specific costs. It is "use it, or lose it" so you have to spend those funds that year or forfeit them. ...
Recent FLSA Changes in Effect: A Deep Dive into Employee or Independent Contractor Classification
Short Version: As of 3/11/2024, significant revisions to the Fair Labor Standards Act (FLSA) have come into effect, reshaping the landscape of how workers are classified as employees or independent contractors. ...
Demystifying FICA: Understanding the Federal Insurance Contributions Act
Short Version: FICA mainly funds Social Security and Medicare. It involves contributions split equally from both employees and employers - Social Security tax is 12.4% and Medicare tax is 2.9%. If you are a 1099, you are considered the employer and pay both...
Navigating the Qualified Business Income (QBI) Deduction: A Simplified Guide with Illustrative Scenarios
Short Version: The Qualified Business Income (QBI) deduction is a tax provision in the United States that allows certain business owners to deduct up to 20% of their qualified business income from their taxable income. The QBI deduction is generally available to...