W4 vs. 1099...what's the difference?

[flavio]

A new employer responded to a resume I sent in and seems interested but in their email they asked "Your billing rate per hour for full time work (W4 not 1099)".

Besides the fact that I hate throwing out figures first, I am not sure how W4 vs. 1099 affects me.

I feel like I should throw out a lower hourly figure than I think i might be able to get because I really need the job. They're not looking for a range either, they want a specific dollar amount. :frown:

 

[amnesiac]

W2 / W4 employees are considered permanent and so the employer withholds money for taxes.
1099 employees are considered 'temporary' and therefore pay taxes directly to the IRS. Employer declares total amount.

 

[flavio]

So I suppose in the end you have the same amount of money either way? I don't see why it would affect my rate.

 

[MajesticMoose]

according to amnesiac's esplanation maybe it's a good thing that you are using the w4. Seems to me that would mean that you are being considered for a permanent job rather than a temp position.