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Another thing is that sudden switch from (what the OP thought was W-2) W-2
to a 1099 basis. If you are banking on W-2 and you do not really know all
the 1099 stuff, or if you are not set up for that already, then it is not a
trivial matter to switch just because you want the job.
W-2 is indeed easier. For example, you would not have as much to be
concerned about with regard to taxes and paperwork.
1099 is harder, but on the other side of the coin, you are supposed to have
your freelance situation set up pretty well - you cannot do this easily on
the fly, as Al noted.
Seems to me that a recruiter ought to know this dance pretty well.
Gene Kim-Eng wrote:
"The OP said the rate was "negotiated," not that it was what the
client offered, and I wouldn't want to tell someone to pass
on the job if the negotiated rate was already 50% higher
than the local average."
Well said, except, the OP said the rate was negotiated based on W-2, but was
changed to 1099 after the W-2 rate was given. In most cases, the 1099 rate
comes out to be nearly double the W-2 rate when you figure in all the
additional costs that the contractor must bear. However, this is not always
true and, as Gene says, it depends on the W-2 rate that was negotiated
previously. I think the real problem with the OP is not knowing that the
"negotiated" rate would be 1099 versus W-2. We were told that the recruiter
didn't make that statement until after payment negotiations were complete.
We were not involved in the negotiations, so we have to take the OP's word
for that; however, one of the first things I clarify in any contract
negotiation is what rate are they looking for....1099 or W-2. It keeps these
types of problems from popping up in inopportune times. Al Geist
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