Date: Mon, 8 May 2006 21:07:42 EDT
Sender: "SAS(r) Discussion" <SAS-L@LISTSERV.UGA.EDU>
Subject: Re: SAS Consulting - W2 vs CORP to CORP
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Just to add what others have said, it looks like the W2 is the way to go (if
I had to make the decision).
One of the things that if you are not incorporated and you get paid via 1099
(e.g. no taxes are taken out of your pay) is that the dreaded
"self-employment" tax that you have to pay. This includes the part of the federal taxes
that your employer pays when they pay you on a W2 basis. It sounds like $5
would hardly cover that if that is the spread that you are having to choose
from. As others have said, if you are not a corp, then there probably is not
enough time to set up a corp-to-corp if you have an offer in hand.
Typically, the "spread" between W2 and 1099 (or corp to corp) should cover
your self-employment taxes, travel, lodging, healthcare, vacation/sick days,
marketing, etc. These items need to be considered if going this route.
Good luck with making your decision.
Erik S. Larsen
P.O. Box 505
Charleston, SC 29401-0505
A SAS Certified Professional V8
A SAS Alliance Consulting Partner, Affiliate Member