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coryking | 4 years ago
That is how it is if you are a contractor working for any tech company.
The actual shitty part about being a "contractor" is you are almost always a W2 for the contracting firm. Which means you get none of the benefits of actually being a real contractor. As a 1099 you can:
* Deduct (and potentially charge for) a ton of shit like travel expenses, hardware, software, internet, phones, home office, etc
* Set up a SEP IRA which lets you contribute 25% of your salary up to $58,000. This is far more than what you can contribute to an employer sponsored 401k (though as a W2 your employer can top your 401k to the same limit)
* Bill as high of a rate as you can get away with
* Easily work multiple gigs at once
* Use your own tools.
* It's your own business, literally. So act like it!
The drawbacks to a 1099 are:
* You are your own collection agency. Some clients are very slow to pay you.
* You have to pay your own social security and stuff
* You pay full freight for healthcare
* You are not entitled to unemployment
* Taxes get a little more complex
* You are a "flake" in the eyes of a bank... so getting loans for houses and stuff is a little harder.
As a W2 working through a bodyshop you get:
* Paid weekly no matter how slow their client is paying
* They provide you equipment... no matter how shitty it is
* Maybe some kind of shitty healthcare offering that disqualifies you from buying your own plan and deducting it on your taxes
* Maybe some kind of shitty retirement plan that disqualifies you from contributing pre-tax money to your own IRA
* You can collect unemployment. Helpful for that 6 month break.
* You get paid at a substantially lower rate than whatever they are billing the client.
* You are a cog in a machine.
unknown|4 years ago
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