W2 vs 1099:

Currently I'm a "Self Employed Contractor" on a 1099 contract to a large oil company.
Recently got a phone call about a new job. New company only offers an hourly W2 rate.

Assuming gross pay is the same... and waiting on my accountant...

What do I need to consider? I'd lose all my write-offs I presume (which in reality is only travel, cell phone, internet, home office, so not a ton, especailly given my travel cost would cut by 90% on the new gig).

You are correct you will lose a lot of write offs as you mentioned. The employer will pick up the employer taxes that you've been paying, however generally you have a tax advantage as a 1099 contractor in that you can decide what to pay yourself as far as compensation versus profit distributions, the latter of which is taxed a little less up to a certain amount, I think the first 20% is taxed differently (less) and the rest is taxed the same as the compensation, but you have to be careful not to pay yourself too little in compensation or you could get in trouble if audited. The other consideration is benefits….will the new employee role come with any benefits that you are now having to cover for yourself and/or family? Those could provide an advantage for sure. If you really want details about all of this, I'd highly recommend talking to a CPA. Regarding the hourly pay, I wouldn't be surprised if you made less gross hourly pay if they are providing benefits. At the end of the day, you want to make sure that your take home pay, considering out of pocket for benefits, is more than your current take home pay after self paid benefits otherwise you are making less. But if you love the job, that could be okay too. Hope this helps some.

Thanks - I've tee'd up a call with my CPA in the meantime. Thats how I was approaching it. Waiting on the offer letter but it does come with a 401k w/ match, health etc that I've been doing myself.

Being that I'd be 3-4 hours from home on my days on, rather than 27 hours away (or airlines) I think its a no brainer unless the pay is horrible which I doubt.

FunnyFarm14 said:

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Thanks - I've tee'd up a call with my CPA in the meantime. Thats how I was approaching it. Waiting on the offer letter but it does come with a 401k w/ match, health etc that I've been doing myself.

Being that I'd be 3-4 hours from home on my days on, rather than 27 hours away (or airlines) I think its a no brainer unless the pay is horrible which I doubt.

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Was just about to ask if it came with benefits and 401k match. Also, be sure to ask about PTO, since Ive come across some agencies that offer PTO after a certain amount of hours are worked.

No PTO here. Current Role as 1099 is 14 on 14 off, same for W2 spot.