tag:blogger.com,1999:blog-944928944544925191.post1490675111490937888..comments2024-02-03T05:17:34.627-05:00Comments on EngageMeHIT: Employment Models: 1099, W2 Hourly or Salaried, which is right for you? UPDATED for 2024EngageMeHIThttp://www.blogger.com/profile/05858913550240360479noreply@blogger.comBlogger27125tag:blogger.com,1999:blog-944928944544925191.post-16710140937966735042022-01-05T06:29:31.156-05:002022-01-05T06:29:31.156-05:00Your blog provided us with valuable information to...Your blog provided us with valuable information to work with. Each & every tips of your post are awesome. Thanks a lot for sharing. Keep blogging.. <a href="https://mayflowerlimo.com/" rel="nofollow">Denver to Beaver Creek Car Service</a><br />alamhttps://www.blogger.com/profile/14289136721847681290noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-75628643398124746392021-07-20T09:28:10.276-04:002021-07-20T09:28:10.276-04:00Sorry I didn't notice your comment (for the la...Sorry I didn't notice your comment (for the last few years) but better late than never I guess? Currently (in 2021) due to ACA requirements, it is a requirement to offer medical benefits if the W2 hourly consultant is going to work in excess of a specific amount of hours (typically equates to a 6 month engagement working 40 hrs per week) Most consulting firms will offer benefits the first of the month after your start date if your engagement planned for 6 mos or more, some will offer it regardless of the duration of the engagement.EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-15367820205306941222017-09-29T14:27:22.139-04:002017-09-29T14:27:22.139-04:00is it mandatory to provide benefits to W2 hourly e...is it mandatory to provide benefits to W2 hourly employees?Anonymoushttps://www.blogger.com/profile/16149378990754373007noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-32359729371361237132016-02-23T17:40:12.332-05:002016-02-23T17:40:12.332-05:00Via LinkedIn: Some additional - valuable informa...Via LinkedIn: Some additional - valuable information from Roger Walker RN, PMP <br /><br />“A significant factor that has been omitted from this discussion is the retirement investment aspect of each. As a w-2, you are eligible to participate in a company 401k after a period of time, often 6 mos to a year. During that period of ineligibility, a maximum dollar amount may be contributed to a traditional IRA( with $500 catch up if over 50). After eligibility is met, a maximum of $17,500 may be deferred in the 401k (403b in the nonprofit world) and there is sometimes an employer match of 3-6% often with vesting rules. As a 1099 (corp to corp in my case) I have a keogh plan that allows the $17500 of the 401k plus a profit sharing percentage determined when the plan is established. I deferred over $56K for 2015.... That's a fairly significant factor, in my opinion.”<br />EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-71250206022516010622015-03-02T04:23:30.887-05:002015-03-02T04:23:30.887-05:00Nice explanation..
Nice explanation..<br /><br />Anonymoushttps://www.blogger.com/profile/02786003839371079616noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-2998892637333824642014-12-18T15:32:15.326-05:002014-12-18T15:32:15.326-05:00Hi Mary, I have a post on the blog about negotiat...Hi Mary, I have a post on the blog about negotiating hourly rates. This should answer your questions. Thank you!EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-16919737876722642482014-12-18T15:30:33.895-05:002014-12-18T15:30:33.895-05:00Hi Cynthia, my apologies, I am just now seeing you...Hi Cynthia, my apologies, I am just now seeing your post. With W2 hourly you will fill out employment forms for the company that is paying you when you begin your employment then the company will pay taxes prior to paying you. At the beginning of the year they will send you your tax forms in order to file your taxes for the previous year. Its like salaried employment but you're only employed for the duration of the engagement. Hope that helps.EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-83555185470092196892014-11-11T22:45:21.336-05:002014-11-11T22:45:21.336-05:00I am on a L2 EAD and have got an offer from a cons...I am on a L2 EAD and have got an offer from a consultant for a project with a Bank. The model is that I get employed with the consultant who is contracting with another company who in turn has taken up a project with the Bank.<br />My Employer - Intermediate Company - Bank.<br />Bank pays the Intermediate Company - They pay my employer and He pays Me.<br /><br />My employer says that he will pay me a X$ per hour and give me a W2 every year and I do not have to pay any other income taxes. The X$ per hour in my account is my final income.<br /><br />Is this how W2 employment works OR do I have to separately pay taxes on the X$ per hour that I earn ? Cynthiahttps://www.blogger.com/profile/08927251924048819605noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-19387259477436180022014-09-26T20:10:21.234-04:002014-09-26T20:10:21.234-04:00Is there a formula for calculating a desired rate/...Is there a formula for calculating a desired rate/hr. when shifting from a permanent, salaried W2 employee to C2C? Let's use the following scenario. <br /><br />a) A full-time employee is earning a base salary of 100k<br />b) In addition to their base salary they also receive a 2.5% annual performance bonus, 25 days of PTO, 3% 401k employer match, as well as medical/dental and LTD. <br />c) This person decides to become a consultant, establishes an LLC, and wishes to maintain a comparable income. <br /><br />I see three possible ways to calculate the desired rate/hr.<br />1) Calculate the value of everything listed in b (above), add it to the $100k base salary and divide by 2080 (40 hrs/week x 52 weeks).<br />2) Base salary + x%/2080<br />3) Base salary/2080 + $x/hr<br /><br />Questions:<br />1) Are any or all of these methods used?<br />2) Are there industry standards or rules-of-thumb to determine the value of x in examples 2 & 3?<br />3) Do you simply go by what the recruiting company tells you is the "going rate" for a given position?<br /><br />ThanksAnonymoushttps://www.blogger.com/profile/11611091228952670843noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-1838057274367489012014-03-17T14:25:59.777-04:002014-03-17T14:25:59.777-04:00Via LinkedIn: I found your posting with regards t...Via LinkedIn: I found your posting with regards to the subject above very helpful. <br /><br /> Thank you very much for sharing it! <br /><br /> Best regards, <br /> Petros Aidonis EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-35506222184003207122014-03-04T18:54:14.612-05:002014-03-04T18:54:14.612-05:00Thank you Nicholas! Great information. It is alw...Thank you Nicholas! Great information. It is always best for a contractor to review the benefits and cost of benefits provided by the consulting firm and compare them to what they can obtain on their own!!EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-79753083981317223492014-02-18T11:07:47.796-05:002014-02-18T11:07:47.796-05:00Also, great article! It clarifies a lot...Also, great article! It clarifies a lot...Anonymoushttps://www.blogger.com/profile/11057673065307495843noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-52640225309564526412014-02-18T11:04:24.920-05:002014-02-18T11:04:24.920-05:00w2 consulting benefits are typically atrocious to ...w2 consulting benefits are typically atrocious to the point where you should basically assume that you don't have benefits. For instance, it might cost you $175/week for health insurance for two people. And that's a high-deductible plan! Of the so-called "benefits-packages" I've seen from the big consulting companies, none of them have benefits that I would opt in to. It will typically be much cheaper for you to find your own health-insurance than use the contracting company benefits.Anonymoushttps://www.blogger.com/profile/11057673065307495843noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-31600014651661921222013-05-13T04:06:17.852-04:002013-05-13T04:06:17.852-04:00Thanks for giving the clear picture about those th...Thanks for giving the clear picture about those three concepts.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-22383167052387194292013-05-07T19:03:33.957-04:002013-05-07T19:03:33.957-04:00Via Linkedin -
Donna Cusano • Thanks for this Che...Via Linkedin - <br />Donna Cusano • Thanks for this Cherie. It simplifies--accurately--the differences between employee, W2 hourly, 1099 and Corp-to-Corp arrangements, for those of us who aren't salaried anymore. EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-12520476995161131152013-03-27T17:04:10.070-04:002013-03-27T17:04:10.070-04:00Hello Sun-Moon,
Each company is different - some c...Hello Sun-Moon,<br />Each company is different - some companies may provide PTO or specific benefits for W2 hourly consultants so it is important to ask during the interview process. The above blog/post is just an example. Thank you!EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-24602824238378097172013-02-18T16:55:17.477-05:002013-02-18T16:55:17.477-05:00Hi,
In your article that w-2 hourly consultant h...Hi, <br /><br />In your article that w-2 hourly consultant has less benefits than the w-2 salary employee. Except the PTO, will I get the health insurance or 401 K benefit just like the employee? If not then I will need to calculate that into my hourly rate, right?Anonymoushttps://www.blogger.com/profile/08701706995465619762noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-30378355444105200962013-01-16T14:50:29.784-05:002013-01-16T14:50:29.784-05:00Hi Ronald, I am confused by your post because 1099...Hi Ronald, I am confused by your post because 1099 is a contractor however you mention a salary and 401K which an independent contractor would not receive from an "employer"EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-74371993899083122872012-12-14T20:00:16.499-05:002012-12-14T20:00:16.499-05:00I am close to retirement and choose 1099 because o...I am close to retirement and choose 1099 because of the opportunity to contribute a substantial amount into my pretax retirement 401k. My corporation matches at 25% of my salary which minimizes my wages subject to Social Security taxes and I also can control 100% the type of investments that are in my plan.Anonymoushttps://www.blogger.com/profile/07293230024970530520noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-86195220244816573342012-12-10T09:35:51.433-05:002012-12-10T09:35:51.433-05:00via linkedin: From: Lesley Hughes
Thank you, this...via linkedin: From: Lesley Hughes <br />Thank you, this article was very informative. I have been working as a consultant for about 2 years now and have only worked as W2 hourly. I have often thought about 1099 contracting and now I feel I have a better understanding of the pros and cons. EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-73572053357661829932012-12-06T18:56:52.670-05:002012-12-06T18:56:52.670-05:00From Mary T. via email:
I would rather be a salari...From Mary T. via email:<br />I would rather be a salaried employee (consulting). I have been a 1099 and a contractor also but prefer the salary with benefits. You have ownership in the company that you represent.<br /> <br />Thank you!<br />MaryEngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-25685460345150800422012-06-01T11:00:43.333-04:002012-06-01T11:00:43.333-04:00Thank you for pointing out the misspellings! I fl...Thank you for pointing out the misspellings! I fly through these and often don't use spell-check... I've made the necessary corrections!!EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-86817185180764896012012-04-12T16:13:08.392-04:002012-04-12T16:13:08.392-04:00I'm finding that I pay quite a bit more taxes ...I'm finding that I pay quite a bit more taxes as a 1099 contractor than as a W2. The reason is that I give quite a bit of charitable contributions. As a W2 those contributions drastically reduce my personal tax liability. However, they do little to nothing to reduce my businesses tax liability.dleehttps://www.blogger.com/profile/12678881035345398985noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-14500414305205421782012-03-06T09:53:12.552-05:002012-03-06T09:53:12.552-05:00Thanks Andrea!Thanks Andrea!EngageMeHIThttps://www.blogger.com/profile/05858913550240360479noreply@blogger.comtag:blogger.com,1999:blog-944928944544925191.post-91962306142162830322012-02-29T14:51:47.094-05:002012-02-29T14:51:47.094-05:00Hello! I've been an EMR consultant for more th...Hello! I've been an EMR consultant for more than 5 years and have worked under all 3 payment options listed here. You've offered some great clarity on these options, I'm sure this information will be helpful t up & coming consultants.<br /><br />One additional distainction I would make is that 1099 to an indiviidual is most often paid just like hourly (as far as timing; bi-weekly, weekly, whatever the clients normal pay period is) whereas corp-to-corp requires invoicing. <br /><br />I work corp-to-corp and the tax benefits can be great - provided you get an accountant and follow their advice! I have done 1099 as an individual and ended up with a tax bill because I hadn't paid quarterly taxes. It's so easy to put off paying those taxes but it will catch up with you :)AndreaKnowsEMRhttps://www.blogger.com/profile/14973675697651823743noreply@blogger.com