Hi… I would like any one’s opinion on being hired as a contract employee?

Arizona Native

October 17,2022 at 5:00PM UTC

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Hi… I would like any one’s opinion on being hired as a contract employee? I just interviewed with a company which hires you as a contract employee for a YEAR! I’ve never worked as a 1099 employee and feel it’s a long time to be in a contract. I feel negative about this, but they pay a high hourly wage. Thank you.

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AnonymousOctober 17,2022 at 5:52PM UTC
I've been a contract employee many times. Sometimes for years. The higher pay is because you have to get your own medical insurance and you may owe taxes if you make a lot. That depends on your tax bracket. I also worked w2 jobs at the same time, so I did not end up owing anything when I did my taxes. Though my partner works 1099 jobs so it does impact my taxes since we file together. You have to remember to save money to put towards taxes.
and a year will fly by. Even if it drags a few months, it will get here before you know it.
Shanita Taylor BSIS, BSc (Psyc), M.A.E.LOctober 17,2022 at 7:36PM UTC
Insurance may not be provided and you may have to pay taxes on the money you earn, at the end of the year. Google, working as a 1099 employee. Also, please be sure to read your documentation carefully.
AnonymousOctober 19,2022 at 12:33PM UTC
1099 employees are required to pay self employment tax which ranges around 40-50% of total earning through the year. It’s a combination of state tax, self employment tax (15.3%) and the FICA employment tax (~20%). There a few right offs available to contractors who do not “own” a business.
Even though the wage is higher, the benefits are not necessarily better.
AnonymousOctober 17,2022 at 8:52PM UTC
Well as a contractor you will not be eligible for any benefits but that generally a much higher hour rate.
What I would pay special attention to are:
1. Payment. Do you invoice the company, if so, how often and what are the payment terms? Upon receipt? 30 days? 60 days? Just be careful to understand this.
2. Do they provide a computer, supplies, software,
3. What are the conditions for termination? Can you terminate the contract for convenience? Can they?