How will switching from 1099 to W-2 affect my pay? 

In this example, we have a 1099 worker who makes $50 per hour and switches to our W-2 plan.  The breakdown is a scalable model, so you can take your current 1099 rate and calculate how a W-2 will affect your pay rate. Questions? Contact us.

Your client pays the same rate, so there’s no inconvenience. 

In fact, switching to a W-2 can be beneficial to your client due to the increasing regulations imposed by the IRS.  The federal government frowns on 1099. If your client can answer 'yes' to the following questions, they could be held liable for misclassification of the 1099. 

1. Does the company control or have the right to control what the worker does and how the worker does his or her job?

2. Are the business aspects of the worker's job largely controlled by the employer?

3. Does the employee have written contracts or employee-type benefits?

Even if your client cannot say yes, it is best to play it safe by filing an SS-8 form, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, with the IRS.

Or, your client can avoid these potential unpleasantries by working with us to switch you to W-2.

Bi-weekly Paycheck

We pay you every two weeks, via automatic deposit, so you have regular steady income, regardless of whether or not the client has paid for your time. This eliminates the hassle of you billing and collecting from the client and waiting for your check.  Most companies pay in 60 to 90 days, even when the terms are net 10 or net 30; we follow up and eliminate the unpleasant task of you invoicing and trying to collect.

Federal & State Withholding

All of your taxes are withheld and paid by us – including unemployment, social security, and income tax (both Federal and State income tax if applicable).  We provide a W2 at year end, so no extra accounting is needed for your taxes.

Paid Time Off

As our employee, you will accrue paid leave with every hour you work, which equates to two weeks in a normal full-time year of 1920 hours; this can be used against hours not worked or paid in four-hour increments for extra pay.  As a 1099 contractor, if you are sick, take vacation or there is a state holiday, you have no Paid Time Off other than your own savings.

Unemployment Eligibility

As a 1099 contractor, you are not eligible for unemployment benefits. But as a W-2 employee with us, you can claim unemployment if you should find yourself without a job.

Health Insurance

If you are working 30 hours or more per week, you and your family can select to be covered by one of our United Healthcare PPO plans.  If you enroll within thirty days of becoming eligible for the plan and you have had no breaks in coverage greater than 63 days, there are no pre-existing conditions and you cannot be turned down.  The plan features full medical coverage and a prescription drug card.  We pay the first $237 of your insurance.  If you do not have another position immediately, you can go on COBRA as our employee.  If you are a 1099 contractor, you are not eligible for our insurance and consequently would not be eligible for COBRA.

Dental & Vision Insurance

If you are a full-time employee working 30 hours or more per week, you may enroll in our United Healthcare dental plan and/or VSP vision plan.  The dental plan covers 100% of preventive care, 80% of basic care and 50% of major care.  The vision plan offers affordable benefits with great savings.

401(k)

Any employee working more than 20 hours per week will be eligible at the first entry date (Jan or July) after six months.  The plan offers a variety of funds from which you can choose.  We also have discretionary matching funds that can boost your savings account.

Long-term Disability

As our employee, you are eligible for Long-Term Disability benefits without going through underwriting—we pick up the tab for the premium.  We pay 32 cents per $100 of pay up to a cap of $6000 per month.  The benefit begins after 6 months of disability and will pay up to 60% of your gross compensation with a monthly benefit not to exceed $6000 per month until age 65.   An individual policy can be extremely costly depending on your individual situation.

Life / AD&D and Short-term Disability

As our employee, you are eligible for $25,000 of Life and AD&D insurance, along with Short-term Disability. The Short-term Disability pays a benefit of $100 per week, beginning with the 8^th day of illness or first day of accident. The duration of Short-term Disability is six months.

Job Placement

When you're working full-time, it's hard to find time to market yourself for your next project or job.  We represent some of the top companies in America.  We can market your skills to these companies and provide you with additional contract, contract-for-­hire and permanent opportunities.  We also allow our clients to hire our consultants, as desired, to a full-time employee status.

If you are working under a 1099, you can switch to W-2 with us and start receiving the benefits you deserve.

All you need to do is contact us with your information (Name, email, phone). We we will send the paperwork for you to review. When you're ready, email or call us and we will handle all the necessary steps.  It's that simple.