What is the difference between W-2 and 1099 contracting?
Great question! While most of our contractors are under the W-2 umbrella, some contractors do opt to work as 1099 workers instead. Here is a quick breakdown of the two options if you are considering contracting through Accountants One.
W-2 is the tax form used to report an employee's annual income. As a W-2 employee, you have payroll taxes automatically deducted from your paycheck and your employer pays the government directly. W-2 employees are eligible for healthcare benefits and even 401k programs after an initial new hire wait period.
Benefits of Being a W-2 Employee
- Healthcare benefits, once eligible
- Company 401k program, once eligible
- No additional tax-related paperwork
1099 Independent Contractor
1099 is the tax form issued to an independent contractor to show how much you were paid for the year. 1099 contractors are responsible for calculating their own payroll taxes and submitting the sum to the government on a quarterly basis. Most 1099 contractors need to pay for their own healthcare benefits and retirement planning. If you don't have time to do your own taxes, we recommend consulting with a CPA who can help you stay on track financially.
Benefits of Being a 1099 Independent Contractor
- Ability to deduct expenses on tax returns
- Able to manage and control tax deductions
- Higher earning potential
Are you ready to learn more about open contract positions?
Whether you want to be a 1099 contractor or a W2 contractor, Accountants One has resources to help!
At Accountants One, we understand the value of contracting, both for our clients and our candidates. Whether your passion is working as a true contractor or more of a temp-for-hire, we’re here to help. We put the same care and passion into placing contract workers as we do direct hire roles.
We’ll support your journey with a track record that offers you peace of mind. Our placement contract success rate has never dropped below 80% and is consistently at least 20% higher than the industry average.
So, if contracting is something you’ve been considering, or you’ve already committed to the notion, let’s chat! We’d love to hear learn more about your aspirations. Reach out to an Accountants One Recruiter directly or check out our open positions.
“I’ve worked with Accountants One as a W-2 employee, and I’ve worked with them as a 1099 employee. In both cases, I found them helpful and knowledgeable. Definitely recommend!”