What is a 1099 contracted position?

Discussion in 'General' started by Bamboobam, Jan 28, 2014.

  1. #1 Bamboobam, Jan 28, 2014
    Last edited: Jan 28, 2014
    I tried looking this up, but it's kinda confusing to me. I applied for a job and I glanced over the part that said it's a 1099 contracted position and it's a part-time job. So, what does this mean exactly? I know it has something to do with taking out your own taxes and such and paying the government money back?? Is this a good/bad thing?

  2. Yeah you do your own taxes and it's double whatever normal
    Tax is, like I get 1099'd and I pay like 20% of my earnings to the government, it's fucked up but it is what it is

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  3. Like Joshipoo indicates. You pay quarterly income tax and then both portions of SSI and medicaid etc. :smoke:
  4. #4 Bamboobam, Jan 28, 2014
    Last edited: Jan 28, 2014
    What? So you pay double than if you were a normal employee with a W2? My question is, is it safe to say that I should stay away from 1099 contracted positions since there is so much involved? I honestly don't think I could keep up with quarterly payments...
  5. yeah unless you want the headache of doing your own taxes or it's a good paying job, but yeah it's basically like you are self employed but you can't cheat on your taxes because the company/business you would be working for make sure the IRS knows that you should be paying money and how much because they don't want it to come back on them

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  6. And yeah you pay double because you are paying the employer and employee tax...a huge fucking racket

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  7. Oh hell no. I'm gonna cancel this interview then. Totally not worth it for me. Thanks for the info!
  8. Really depends on the pay rate. Basically you will pay 13.3% of your wages for those taxes. In reality it is about 6.65% more then you do now, plus the time for the paperwork. Just have a deduction go straight to the bank and pay from that (if the wage is worth while). :smoke:
  9. I don't think it is. It's basically an entry level position which isn't that much.
  10. yeah no problem, and sorry for not explaining it perfect. some situations it's worth it but some it's the opposite, but it is a good thing to understand and know how to do if you have a chance to

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