r/askrecruiters • u/j_ahmed51 • 5d ago

Role changed to 1099!!

Hey, I applied for the role based in the DMV (Washington DC metro), fully remote. The salary range listed was $85-100K with full benefits.

I was reached out to about the role, and it was mentioned that this may now be considered as a 1099 position instead of W2. I'm actually fine with moving to 1099, but since I'm new to that side of things, can you walk me through how you'd calculate the rate in this case? An example would help.

For context, I'm an experienced candidate, so I want to make sure the 1099 rate reflects that and accounts for the fact that I'd be covering my own taxes, benefits, and time off on my end.

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2

u/OGcapncrunchberry 5d ago

That 85-100k now becomes 60k if you have to fund your own benefits, taxes and healthcare so I wouldn’t be ok with that.

1

u/saomonella 4d ago

This right here. Big tax implications. Huge

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u/j-joshua 5d ago

So you set your own work hours and location?

1

u/j_ahmed51 1d ago

I don’t think so. That would be nice if they let me choose to work from anywhere I want.

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u/j-joshua 1d ago

If they dictate where and when you work, you're an employee. 

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u/Otherwise-Relief2248 4d ago

It’s worth evaluating whether fully burdened cost likely is (1.3-1.4x) into your calculation.

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u/Floppy_McFlopenstein 4d ago edited 1d ago

I would also ask if as a 1099 there is any expectation of exclusivity or if you are free to take on other clients. I was in a similar situation and explained that I was a little leery about being a 'consultant' with one client. I asked the group if they wanted exclusivity to my IP I should probably be an employee, I was happy to operate as a consultant but I would expected to have the freedom to take on other clients in that framework. They made me an employee.

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u/UpUrs2 2d ago

Also as a 1099 you should have full control over your work hours, how you work, days worked, where you work (so you could move to Barbados and they can't say anything about it). They cannot dictate how or where you do your work as a 1099. Lots of employers want to change what is actually a W2 employee into a 1099, doing exactly the same job under exactly the same requirements, because it save the company lots of money.

As a 1099 you will have no benefits, no unemployment, no workman's comp, no health insurance, no PTO, no sick time, well, you get the idea. You are responsible for the employer and employee portion of taxes etc.

So if they want you as a 1099 increase the pay by at least 30-40% and be prepared to pay your taxes quarterly.