w-2 versus 1099...repost

[JBB]

This was a good thread of discussion.

I am quoting the original post by hoyster for your reference

Quote:I am (very gratefully) starting a new contract Monday, at a very decent rate, with an 18-month pseudo-commitment (pseudo because legally they cannot make commitments for the next fiscal year, but that's the plan and they're the once making the decisions).

The brokerage offered me $X as a W-2 or $(X+$5) as a 1099. My math:

The brokerage pays 6.5% of the first $70K or so, for a total of $4550 (about). The extra $5/hour for 2000 hours is $10,000! So I'm more than $5000 ahead if I go 1099?!

Which I (obviously) did.

Did I do the math wrong? Is the broker just a nice guy (he seems like one) or are there numbers he/I am not aware of?

[JBB]

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