Guys: I have an email from a recruiter and he is asking me if i would be interested in working as a w-2 employee. I have not heard that term very often, but more so a 1099 employee. Is there any downfalls to work as a w-2employee?
A 1099 worker is just someone who works as a contractor and usually does not receive benefits. A W-2 worker is someone who works for a company full/part time and usually receives benefits. You have to decide for yourself which you'd rather be. I personally enjoy receiving benefits (health care, vacation, etc) from my employer.
Depends how you structure your tax return. If you run a business, and file a schedule C, you can deduct work-related expenses. Under this scenario, you'd want a 1099. If you are a full-time employee getting a W-2, you usually cannot deduct expenses. Also, depending on the type of work you do, your employer (in a W-2 relationship) owns the intellectual rights to your work product. In a 1099 contractor relationship, you usually have more intellectual ownership rights to your work product (computer software, photographs, art work, inventions). If in doubt, check with an attorney.
Harry- Thanks for your advice!! I am going to talk to the recruiter about it tomorrow or Monday. He emailed me about working under contract or w-2. Since my job is closing plants down I am very interested in talking to him.