1099 employment question

  1. I was offered a 1099 position in another state through a locums company. The company would be paying for my lodging, rental car, uniforms and transportation expenses. The rate was $62.00 per hour. I didn't accept as it seemed to leave me with a huge tax burden. Any thoughts?
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  2. 5 Comments

  3. by   Jules A
    Regardless of if they offered full federal benefits and someone to shovel your cat boxes that is a crap rate and I'd have promptly told they to shove it and to never contact me again.
    Last edit by Jules A on Aug 10 : Reason: On second thought could this possibly be real?
  4. by   DizzyJon
    I'm not sure if that is the worst rate. If it didn't have anything with it, then yes. But, $62 and not needing to pay for lodging or a car. In Cali I've gotten offer's though in the $70's per hour.
  5. by   Jules A
    Quote from DizzyJon
    I'm not sure if that is the worst rate. If it didn't have anything with it, then yes. But, $62 and not needing to pay for lodging or a car. In Cali I've gotten offer's though in the $70's per hour.
    But with traveling the transportation and lodging isn't a perk its a necessity and imo shouldn't be given one iota of consideration toward compensation. Its like NHSC facilities acting as if the tuition reimbursement is in any way a reason to consider a lower rate or an employer saying that their contribution to your share of FICA as an employee is a perk, yeahhhhNO.
  6. by   gmorrisFNP
    Seems a bit low as you will be responsible for all taxes....
  7. by   TammyG
    Your taxes as a 1099 employee will be somewhat higher because you must pay a larger share of your social security tax; normally that is shared by your employer, but now you'll be paying for it all yourself. You also have NO benefits -- no health, 401k, dental, holidays pay, vacation, etc which can amount to quite a lot of money. But, you can deduct a whole bunch of stuff from your taxes which might amount to a sizeable savings. You can find lots of guides to 1099 employment online or in a book store that will spell this all out for you.

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