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Old 03-20-2013, 01:20 PM
britsteroni britsteroni is offline
LawnSite Senior Member
Join Date: Feb 2007
Location: Missouri
Posts: 334
Originally Posted by jermana232 View Post
Thanks for all the replies. Does anyone have an estimate of the difference I'll pay in taxes at $11/hr as a 1099 (without any deductions) vs w2?
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First of all, take the time to go back and re-read Roger's post above. It is spot on. This is not some sort of game or joke. Your state will be after your "employer" for unemployment taxes and the IRS takes the misclassification of employees very seriously.

From everything you've described, you are not a subcontractor. It is as simple as that. Again, follow Roger's advice and find a new job. It isn't that difficult. If you are skilled as a mowing operator, I'm sure you can find another job as a W-2 employee for a legit lawn care operator for $11/hr.

Now, if you insist on continuing at your own risk, you will pay the entire portion of the Social Security and Medicare Taxes. That equals 15.3% (some people are saying 13.3%, but that is incorrect. The law reverted back to 15.3% in January of 2013.

So, assuming you make $11/hr and work 1500 hours this year as a contractor, here is what you'll be paying:

As a "contractor" = $16,500 x .153 = $2,524 in payroll taxes.

As an employee = $16,500 x .0765 = $1,262 in payroll taxes.

So you are losing out on $1,262 in extra tax owed b/c your "boss" is not playing by the rules.

Also, this does not take into account federal and state income taxes.

There are some deductions you would be entitled to, but they won't come close to making up the $1,262.

Again, find another job. It is in your best interest.
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