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I'm a 1099 "employee"..questions

Discussion in 'Business Operations' started by jermana232, Mar 19, 2013.

  1. jermana232

    jermana232 LawnSite Member
    Messages: 19

    I work for a one man landscaping company as a 1099, Ive been with him for a little over a month now. How much money am I losing out on come tax time as opposed to a w2? So I'm at 11/Hr but after taxes as a w2 your really at let's say 9.25 Hr. Would anyone know how much less an I'm actually get as a 1099? I'm on his insurance but am I actually covered if say I hit a rock and it breaks a window since I am a "contractor" is that all on me? I just need a job pretty bad and was happy to get this until I really researched the 1099 thing. Any info is appreciated, thanks.
    Last edited: Mar 19, 2013
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    1st your an employee,he's just trying to skate around the tax .Also if you were a 1099 you will have to pay all taxes on that amount.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    There is no such thing as a 1099 employee. He is breaking the law.
    Posted via Mobile Device
  4. jermana232

    jermana232 LawnSite Member
    Messages: 19

    Right I understand that but I finally was able to get a job
    Or else I would just leave. I was just curious how much more I really am losing out on as a 1099 in hourly wage. Also am I truly covered by hiss liability ins?
    Posted via Mobile Device
  5. Junior M

    Junior M LawnSite Fanatic
    Messages: 13,595

    Better put some money away each week, it's a good amount when you gotta pay at the end of the year.
    Posted via Mobile Device
  6. Alluring Lawns

    Alluring Lawns LawnSite Member
    Messages: 82

    Your are treated like a contracted employee, which means that you have to pay the employee and employer portions of medicare and social security tax (aka self-employment tax) which is 13.3 percent on top of your income tax rate. So if he's paying you at least enough as a contracted employee to cover that cost then your fine. Yes, his insurance should cover you if you break a window.
  7. jschultznorth

    jschultznorth LawnSite Member
    Messages: 52

    you will be paying double the social security tax is all really. Normally an employee pays a percentage and the employer pays a percentage. All the others are the same. I just put 25% of my check away for taxes and pay quarterly to avoid a fine. I am 1099 also. Don't know how it works with you but I have to have a buisness license because of that. I claim my miles on my truck at the end of the year which is a 55 cent a mile right off, cell phone bill and any other stuff I need as a 1099 "employee", vendor, whatever you want to call it.
  8. jermana232

    jermana232 LawnSite Member
    Messages: 19

    So really I'm just paying 6.8% more then I normally would since I'd e paying the employers half of the 13.3 as well? I don't drive my truck when actually working i just commute to his shop
    Daily an ride with him. Anything else I could claim?
    Posted via Mobile Device
  9. dstifel

    dstifel LawnSite Senior Member
    Messages: 928

    Clothes cell phone any equipment
  10. larryinalabama

    larryinalabama LawnSite Fanatic
    Messages: 19,478

    Thats about it, however since your wmployed and not a sub contractor yall fellers are breaking the law so I keep the whole thing on the "QUIET"

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