Non-Immigration related - 1099 Questions?

[gctakingtoolong]

Hi
I was recently offered a contract thro 1099. Since this is my first time, I have some questions about this.
1) Is it legally allowed to work in 1099 with your EAD ?
2) Do we have to own a company to work in 1099 ?
2) Who pays the taxes and how is it paid ? Would the taxes paid by employee thro 1099 would be the same as thro W2 ? Or would it be more or less ?
3) Any other information anybody could provide on this will be helpful.
Thanks

 

[bbbishop]

gctakingtoolong

With 1099 you end up paying almost for everything. You can work on 1099 with your EAD and you don't need to have your company for that.

1. You will pay from both sides (self contribution and employers contribution) on the Social Security and medicare.
2. You will pay all the taxes on your income, normally while you file your returns.
3. You will pay for all the insurance from your pocket (I believe your medical expenses should be min 7% of your gross income to claim that). Normally the employer will not pay for your insurance.
4. Similar to hourly rate, you are not entitled for paid vacation or holidays.

This is what I learnt from my friends.

Bob