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Recently moved to SF Bay area because of husbands job. I am looking for jobs now. There is a plethora of IT contractor jobs & I currently have an offer of $40/hour without benefits (husband's company has excellent medical benefits)
Does w2 mean no taxes? Or less tax compared to regular employees? How much would I make monthly after taxes?
W-2 means you are classified an employee and taxes are withheld.
1099 is the alternative which means independent contractor where no taxes are witheld, you are treated as self employed, and must file quarterly estimated taxes with the fed and state as well as pay the employer portion of social security and medicare called the self employment taxes. On the plus side there are all sorts of deductions you can take as a 1099. However, there are strict guidelines as to who can be classified 1099 as many bad employers have tried to abuse this.
No taxes? I think it's safe to say that there is no job where you don't have to pay taxes. Unless you take a vow of poverty...officially. Form W2 is sent to you at the end of the year when you are an employee and shows the amount earned, the amount withheld and the amount of exemptions claimed on W4 When you start your job
Not no taxes, no taxes are withheld for a 1099 by the firm/client. It is up to the individual to make estimated payments each quarter with the fed and state or penalties will be assessed at filing time the next April.
The free salary paycheck calculator from ADP will allow you to calculate your net pay after taxes. It takes into account deductions for benefits(401k, health insurance, etc), if you have it handy.
In a W-2 arrangement, you are employed by company A who is a contractor to company B. You may have a client manager at company B, but company A is the responsible party financially and legally. The client manager can usually just call company A and say to not show up. As a W-2, you are not protected by HR policies, etc, as you would be if you were an FTE.
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