W2 vs. 1099? I am a part-time employee with no benefits. Would it be better to become a 1099 employee?

Asked over 4 years ago - Boca Raton, FL

W2 vs. 1099? I am a part-time employee with no benefits (no vacation, no insurance, no disability insurance, no holidays, etc). Would I be better off becoming a 1099 employee with my company? (I already have a small business FEIN. I know I would have to pay estimated quarterly taxes.) Also, if I switched to be a 1099 employee, would I be eligible for unemployment benefits if, for any reason, I was laid off. Thanks.

Attorney answers (1)

  1. Jonathan Robert Geisen

    Contributor Level 8

    Answered . A 1099 "employee" is actually an independent contractor and, as such, would have to pay both the employer's share and the employee's share of employment tax withholdings. Unless your compensation increases enough incrementally to cover your added tax liability, I don't think you'd be better off. And, as an independent contractor, I'm not sure you'd be eligible for unemployment benefits, but I recommend that you consult with a local lawyer on that issue.

    Please note that I am licensed only in Alabama and Georgia. The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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