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I am starting a new consulting job next month and I have to decide whether to be an independent contractor or an employee of the consulting company. If I choose to be independent contractor I will get $5 per hr (10% more) than W2 rate. The consultant company says I am at advantage as I need to pay only 8% in extra taxes and I will be getting more 10% in 1099. Is it true ? Is there any other advantage of being in 1099 ?

If you are Independent contractor you can write off many expenses related to your professions as business expenses. But you will end up paying additional social security taxes. Also you need to plan for the cost of your benefits like medical insurance, money lost from the 401k contribution if any, etc. Do a math to see the additional rate increase will cover these expenses and you are at advantage.

For w-2 you will get all benefits and if you lose your job you can claim unemployment, which an independent contractor will not be able to.. Look at the pros and cons and decide for yourself.