Voting Question: Help! $150,000 Commission, 1099 or W2?

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  • Voting Question: Help! $150,000 Commission, 1099 or W2?


Answer #1 | 12/12 2013 17:31
You cannot receive a W2 and a 1099 for the same job. With everything else being equal and having no expenses, you would net more from the W2. Self-employment taxes are twice the rate of Social Security and Medicare taxes as you have to be both the employee's share and the employer's share.
Answer #2 | 12/12 2013 19:15
insights? you are due to earn $150000 in commissions and this is for the entire year and you have not been paid at all during the year, ie you are getting paid all at one time? what is your agreement with the people you work for, do they consider you an employee or an independent contractor? better yet, have you complete the SS8 from to determine if you are an employee or not? if you claim this $150000 as self employment income you have $66000 is legitimate business expenses? se tax would be $12852 let alone your income tax depending on your status and dependents and since you obviously have not prepaid on 1040Es each quarter you will have a sizeable late paying penalty and interest each quarter as well
Answer #3 | 13/12 2013 10:48
You cannot legally choose a W2 or 1099. The law is very specific about the conditions for each and you either qualify or not.
Answer #4 | 13/12 2013 20:14
$150,000 minus 46% is $81,000, not $84,000. Self-employment tax is 15.3%. Generally, the income tax is approximately 1/14th lower If you are right about the tax being 46% as an employee, then I would estimate it to be 49.8% (3.8% higher) as an independent contractor.
Answer #5 | 16/12 2013 09:48
You actually DON'T have that option. You are an employee or you are not. Especially if you have been paid as a W2 employee so far this year. You can't legally receive both types of income from one job. You will pay MORE taxes as a 1099.

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