90k w2 v.s. 120k 1099

[ViviTheMage]

How can either company agree to this? What type of job is it even?

 

[SandEagle]

what about your rental income?

 

[smackababy]

How can either company agree to this? What type of job is it even?

I would imagine only one company knows of his second job, and even then, it is likely the description of said job was left blank. If I, as a software developer, asked my boss if I could get a second job as a waiter or a bar tender on the weekends, I'm sure he would have no problems. If I told him I wanted to get a second job as a work from home contractor doing development, I'd get laughed out of his office.

No sane manager would agree to what is likely going on here. Even if you could finish "all" your work in the time you were at work, if you had extra, it should be spent on the current job, not on some other job.

 

[IndyColtsFan]

I would imagine only one company knows of his second job, and even then, it is likely the description of said job was left blank. If I, as a software developer, asked my boss if I could get a second job as a waiter or a bar tender on the weekends, I'm sure he would have no problems. If I told him I wanted to get a second job as a work from home contractor doing development, I'd get laughed out of his office.

No sane manager would agree to what is likely going on here. Even if you could finish "all" your work in the time you were at work, if you had extra, it should be spent on the current job, not on some other job.

Yeah, I have a strong feeling one (and honestly, probably both) employers are in the dark contrary to the earlier story we got.

A few years ago, the company I was at spun off one of their businesses (I believe it was sold to some venture capitalists). The spin-off had no IT staff and asked if I'd be willing to consult for them on my own time -- nights, weekends, etc. I ran it by the head of my department and he strongly advised (though didn't outright forbid) me not to do it and explained why. I understood his viewpoint and it made sense.

If the manager in this situation REALLY knows all the details and still said it was OK, I'll stand by my original statement -- he is an idiot, has no clue how to manage people, and clearly doesn't know all the potential pitfalls and ethical/legal considerations. Of course, I still think steppinthrax and TommyGT2000 are the same guy.

 

[steppinthrax]

Yeah, I have a strong feeling one (and honestly, probably both) employers are in the dark contrary to the earlier story we got.

A few years ago, the company I was at spun off one of their businesses (I believe it was sold to some venture capitalists). The spin-off had no IT staff and asked if I'd be willing to consult for them on my own time -- nights, weekends, etc. I ran it by the head of my department and he strongly advised (though didn't outright forbid) me not to do it and explained why. I understood his viewpoint and it made sense.

If the manager in this situation REALLY knows all the details and still said it was OK, I'll stand by my original statement -- he is an idiot, has no clue how to manage people, and clearly doesn't know all the potential pitfalls and ethical/legal considerations. Of course, I still think steppinthrax and TommyGT2000 are the same guy.

Because you play by the rules like a little naive child. And we all know what happens to those who play by the rules.....

I know a guy like this at my current work. He's in his 50's and still doing development work. He gets walked over by people half his age and then they go on to get certs and make higher money than him.... He worked for a bank for 20 years until he was laid off.....

 

[IndyColtsFan]

Because you play by the rules like a little naive child. And we all know what happens to those who play by the rules.....

If by "playing by the rules" you mean having integrity, ethics, and not cheating my company by working for someone else while they pay me, guilty as charged. If you have to get ahead by cheating, well, you're really not that good.

It is pretty obvious you're double-dipping on your company's time and it is probably a pretty good bet neither party knows or at least, knows the details. I called it in the last thread like this that you posted and several other posters call it here too and pretty much told you the exact same thing too. If I'm wrong and your boss knows all the details and still allows it, take my advice and watch your back.

I know a guy like this at my current work. He's in his 50's and still doing development work. He gets walked over by people half his age and then they go on to get certs and make higher money than him.... He worked for a bank for 20 years until he was laid off.....

I'm not sure I see your point -- is there supposed to be one in that drivel? Did you ever think that maybe that guy in his 50s enjoyed development and wanted to keep doing it? Or maybe he had a family and the job had great benefits and he was fine with staying there? People stay in positions for different reasons. I hope when I'm in my 50s, I can settle into some cushy job and coast. I make a ton more consulting now but at some point, when you're older, you just want off the treadmill and into something stable and secure while you coast to retirement. Maybe I'll get a cushy job and get my PhD with my free time and a generous educational reimbursement program, for example. At any rate, it is silly of *YOU* to judge anyone given what you and I both know you're trying to pull.

 

[alkemyst]

Usually you do not get W2 vs 1099 offers. In reality, a 1099 if it have benefits will trump a W2 job just due to the write offs you can do (LEGALLY).

This kind of discussion doesn't come up a lot esp 90k W2 vs 120K 1099.

 

[Wuzup101]

I'm curious as to why this is uncommon (option of w2 vs 1099). I've only been in consulting for 6 years or so, but have always worked as a w2. Several consulting firms have approached me and mentioned that I could work for them as either when assigned to a project. That being said my current project ends at the end of the year so the info would be helpful.

Edit: I work as an engineering and validation consultant in the pharmaceutical field.

 

[steppinthrax]

Usually you do not get W2 vs 1099 offers. In reality, a 1099 if it have benefits will trump a W2 job just due to the write offs you can do (LEGALLY).

This kind of discussion doesn't come up a lot esp 90k W2 vs 120K 1099.

Thanks,

Yes, I did some more research in the subject and found that as long as the 1099 is 30% over the w-2 then it's more than worth it. You will pay all the usual taxes (if it was a w-2). However, you will pay and additional 7.7 or 6.X% additional tax (which normally the employer pays). In addition you can write everything the hell off with home office, tools etc.....

 

[steppinthrax]

I'm curious as to why this is uncommon (option of w2 vs 1099). I've only been in consulting for 6 years or so, but have always worked as a w2. Several consulting firms have approached me and mentioned that I could work for them as either when assigned to a project. That being said my current project ends at the end of the year so the info would be helpful.

Edit: I work as an engineering and validation consultant in the pharmaceutical field.

Because most people don't ask. The only reason why it's been presented to me was because when he mentioned my salary req.... They were over his W-2 req... So to sweeten the deal he asked if I could do 1099.....

From now on I'm going to ask for this....

 

[SearchMaster]

Thanks,

Yes, I did some more research in the subject and found that as long as the 1099 is 30% over the w-2 then it's more than worth it. You will pay all the usual taxes (if it was a w-2). However, you will pay and additional 7.7 or 6.X% additional tax (which normally the employer pays). In addition you can write everything the hell off with home office, tools etc.....

Yeah but be careful with that. Generally speaking your home office should be ONLY used for the second "business", don't try to write off stuff like coffee makers, computers, printers, etc. unless you ONLY use them for the second business. In fact many accountants will recommend getting duplicate items, one for the home office and one for personal use rather than splitting use. Of course it's only an issue if you get audited but things like home office writeoffs supposedly tend to flag you for audit since there's so much abuse.

Yes you'll pay the self-employment tax (which is the FICA/Medicare tax normally split between employer and employee) but since you already make more than $117K in your primary job, you shouldn't have to pay the 12.4% (but Medicare's 2.9% is unlimited and there is a 0.9% surcharge if taxable income exceeds $200K).

Assuming you won't be taking advantage of other company benefits (health insurance, 401K, etc.) you should absolutely be better off doing W-2. As others have mentioned, there is an IRS test as to whether someone should be classified as a contractor or employee, but AFAIK the penalty and responsibility lies on the employer and not the employee/contractor.

I am not an accountant disclaimer.