Hi,
Understanding W-2 and 1099 in Recruitment
W-2 basically means you are a contractor, and you will have your federal taxes, Medicare, Social Security, and sometimes state and local taxes taken out.
1099 means nothing is taken out, and you are responsible for all those taxes at the end of the year, or you pay taxes quarterly. Many people get in trouble like this because it becomes a full-time job just to deduct and pay your taxes every 3 months or yearly. Hiring an accountant costs money, but for a few dollars more per hour, many times it isn't worth it.
Benefits and Contracting
As far as "benefits" and contracting, ask as many questions as possible. I've had various discussions with companies that claim to provide medical benefits when, in fact, it becomes more or less an expense, especially if you have to cover your entire family. I've had contracts in the past where I was paying over $1000 per month for my "benefits."
Many contracting companies and consulting firms, especially in IT, like to advertise "we have a smorgasbord of benefits to choose from." It basically means you are paying for what you get. You can choose a plan that covers nothing for 50 bucks a month, but in the end, 50 bucks a month is a waste if you have to pay 1000 bucks for an emergency room visit.
For me, if I'm getting full benefits where I pay very little out-of-pocket expenses for under 200 bucks a month, that is a benefit. That's about 50 bucks a week coming from my paycheck. But if I'm paying close to 200 bucks per week, that is an expense, not a benefit. I don't care how people try to spin it. Make sure you consider all these factors because sometimes people can be deceptive when it comes to "benefits."
Evaluating Salary and Benefits
Say you make 100K per year. It sounds good. But if your benefits cost around 800 bucks per month, your 100K becomes 90K real quick. Just make sure you get all the information before making decisions. Many firms do not like to give out much info or say, "that is determined later." For me, I need to know these things upfront before wasting time.
Just because they claim there are "benefits" never really means there really are.
If you think spending over 1000 bucks a month should be considered a benefit, then I guess we think differently. But for me, it's an expense. An expense my family and I need to spend just in case something happens, but it's still money out of my pocket every week, every other week, or every month.
I know when I look at salary and rates, I always make sure I know exactly what is included and what "benefit" really means.
Regards.