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i applied for a w2 FT position that would be about 50% remote. at the interview the owner said he thought i might be a better fit for a diff position. it would start out as 1099 for about 6 months for some short term projects, then the person in that position would work FT in another capacity within the org. The position itself sounded great. However, he is expecting this 1099 position to be 40 hours in the office. I'm not sure how that would work b/c the only 1099 position I've ever done was a remote position. Can he even mandate that I be in the office for 40 minutes? I thought that's a big no no for 1099 employees? So I feel like I'm getting all the hard things about being a 1099 w/o any of the benefits. Thoughts?
i applied for a w2 FT position that would be about 50% remote. at the interview the owner said he thought i might be a better fit for a diff position. it would start out as 1099 for about 6 months for some short term projects, then the person in that position would work FT in another capacity within the org. The position itself sounded great. However, he is expecting this 1099 position to be 40 hours in the office. I'm not sure how that would work b/c the only 1099 position I've ever done was a remote position. Can he even mandate that I be in the office for 40 minutes? I thought that's a big no no for 1099 employees? So I feel like I'm getting all the hard things about being a 1099 w/o any of the benefits. Thoughts?
1099 positions usually should involve a contract stating specifically what your job is. They can't tell you how to do it and they don't' have to provide the means to do the job. I'm always a tad wary of office 1099 positions...I think the only legit ones would be for something like stuffing envelopes or something that had a set deadline etc. What he's doing is illegal..go to the IRS website and look up how they define an employee vs a contractor. SO many businesses try to pull this stuff...they just don't want to pay the taxes or provide you with benefits.
i applied for a w2 FT position that would be about 50% remote. at the interview the owner said he thought i might be a better fit for a diff position. it would start out as 1099 for about 6 months for some short term projects, then the person in that position would work FT in another capacity within the org. The position itself sounded great. However, he is expecting this 1099 position to be 40 hours in the office. I'm not sure how that would work b/c the only 1099 position I've ever done was a remote position. Can he even mandate that I be in the office for 40 minutes? I thought that's a big no no for 1099 employees? So I feel like I'm getting all the hard things about being a 1099 w/o any of the benefits. Thoughts?
Don't do a 1099 if you can possibly avoid it. Tell them you are only available for W2 work.
When people refer to "contracting" as through a staffing firm, they are still W2 employees. Which means the staffing company as the employer pays part of the taxes, and must provide according to ACA a health care plan. Also, if you become unemployed, you can collect unemployment. There is no benefit to you working there as a full-time person on a 1099.
If you have your own business, like a consulting business or you are a plumber, then that's 1099 and it has benefits to it. You can apply business expenses to offset your income. But if you are working remotely or in their office full-time, insist on the W2, cause the 1099 does nothing for you really. When the plumber reports to the job site, they have a mileage deduction for example. A 1099 job where you are working there full-time to the same place each day it is doubtful you can get away with that in an IRS audit.
1099 is only better for the employer, not for you when it comes to a full-time job.
There is nothing that stipulates that 1099s can't be onsite. It simply means you're working as an individual contractor as opposed to an employee. The terms and details are negotiated through the contract. They can state whatever they want the work to be via an RFP/RFQ (want you there onsite, or specific hours, etc.).
You are literally your own company - so they are simply paying you for the work agreed upon. Depending on your situation, this may not be the job for you. It may very well be a bait and switch attempt. If you don't like the terms, walk away.
For about 20 years I did independent work, now retired. When offered 1099 just bring out your standard contract that specs pay per hour and other things you want such as locations and work it out. I often did work on site and not. That never bothered me, just always make an effort to say you will invoice by the hour and you are honest on that and will work with the key employees there. Some companies try to make it sort of like you are employed but understand that is not the case. They are just trying to talk about future w-2, and I would just assume that is not the case. Once you are independent doing company to company or 1099, they won't make it w-2. I always did it under a LLC to be sure they understand they are paying your company (which is an IRS pass through entity) and the contract is needed. Never lost the work bringing the contract out, but make it an easy contract. Lots of big companies will not work this way anymore, usually only small companies anymore but be careful they have money. Don't work and not get paid. I don't understand the problems big companies started having and making rules to not have independents and company to company work, since that gets them where they want to go but anyway for another thread. But I assume it is a small company since almost no big companies will do 1099's and independents. They should not restrict other work at same time, or spec hours usually.
There is some fuzziness in exactly what can be required for a 1099, but setting specific office hours like this is a red flag that they are crossing the line.
I agree that this is a bait and switch, you are being offered the 1099 with the hope of a W2 position, which will never actually materialize.
Unless you are desparate for a job, I would counter and say your 1099 rate is 150% ofthe W2 rate in order to compensate you for the lack of benefits and additional tax burden
There is some fuzziness in exactly what can be required for a 1099, but setting specific office hours like this is a red flag that they are crossing the line.
I agree that this is a bait and switch, you are being offered the 1099 with the hope of a W2 position, which will never actually materialize.
Unless you are desparate for a job, I would counter and say your 1099 rate is 150% ofthe W2 rate in order to compensate you for the lack of benefits and additional tax burden
I was going go suggest the same. You may not be able to offset the 1099 income with expenses when you are working in their offices so you have the full income to pay selfemployment taxes.
There is nothing that stipulates that 1099s can't be onsite. It simply means you're working as an individual contractor as opposed to an employee. The terms and details are negotiated through the contract. They can state whatever they want the work to be via an RFP/RFQ (want you there onsite, or specific hours, etc.).
You are literally your own company - so they are simply paying you for the work agreed upon. Depending on your situation, this may not be the job for you. It may very well be a bait and switch attempt. If you don't like the terms, walk away.
Employee vs. independent contractor isn't an option, and it can't be established through contract, if the actual facts and circumstances don't support it. If the F&C say employee, but there is a contract that says independent contractor, the contract is irrelevant.
This agency is jerking you around to try and take advantage of you. By getting you to work 1099 they are evading payroll taxes and don't believe their empty promises about making you a FT employee at the end of 6 months only 27% of temp to hire and 18% of contract jobs overall convert to full time employee positions according to the WE Upjohn Institute for Employment Research. I agree you were baited and switched either pass on it or take it and keep looking and leave at the first opportunity.
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