I just want to know if one can work W2 and 1099 for the same company for the same yr? Is it possible?
Sure. There are plenty of contractors who become employees for the same company, and vice-versa. You should, however, make certain that you meet IRS' definition of a contractor if you go from W2 to 1099. If all that's changing is how you're paid, IRS will not be happy.
I am a consultant and my payroll is being run as per LC requirements....so remaining balance amount, can i obtain on 1099 instead of W2, so we can skip the company taxes of 15% or something?
W2 and 1099 at the same time for the same company? I doubt it. At different times of the year? Yes, lots of people do it without a problem. They start contracting as 1099 and get an offer to join as W2 full time.I just want to know if one can work W2 and 1099 for the same company for the same yr? Is it possible?
I don't know why IRS might frawn at it since I and employer both are reporting these and I am paying the taxes for the 1099 as well... I appreciate if you could elaborate more.
I would guess that so long as you are not trying to claim business deductions against that income you may be fine. IRS doesn't like employees trying to claim they're contractors to get out of paying tax.
Thanks for your replies everyone.
What are the benefits of moving from W2 to 1099? I got GC last yr. If i get more money/less tax on 1099, then i would switch to 1099 instead of being on W2.