TN visa with 1099 or W2ch is better

[preethiissac]

I am a Canadian citizen working in US under TN. My employer whom I got this TN is giving me two options to get my
Payment. Either 1099 to W2. I want to know what the complication in my Taxes is if I work under 1099.first of all I am not sure how 1099 works and I can choose that option or not. What that impacts when I think about processing GC. If I choose W2 then employer is taking 10% employer tax from my hourly rate. Then I am being end up loosing lots of money. Could someone assist me on this...?

 

[nelsona]

Generally those who work asa contractor get paid LOTS more than W-2 for the simple reason that contractors cost the firm less in overhead (no insurance, no FICA tax, etc). For you, you become like a business and get to have some deductions that employees do not have.

The extra money you get as a contractor helps you cover the cost of the fringe benefits you are losing (not loosing) and pay the extra SE tax. It looks like the figure they use is 10% more for contractors, which really isn't that much.

Unless I was sure I would be able to write off a lot of expenses, I would be choosing employee.

Usually a contractor isn't eligible for GC, since the firm is not sponsoring you as a future employee.