I have a meeting this week to discuss salary, and whether id like to go W2 or 1099. FYSA, in regards to tax purposes, rough numbers told to me was if i choose to go W2, salary will be 190k - 200k, or if i go 1099, 230k - 240k
Ultimately i am seeking advice how to make a good decision. Currently, from my current knowledge on the area, i plan to go 1099 and funnel it through a S-Corp while paying myself a "reasonable salary" and taking as much as i can through dividends for reduced taxes.
Does anyone have advice, recommendation, or expereince they would like to share with me? And tips on what this willl allow me to deduct or resources you recommend me to read?
Here is a summary of the details i am unstanding thus far.
W2
Benefits
• Employer education assist, 5k annual
• Employer paid health insurance
• Dental insurance
• 401k match
• Paid PTO
Disadvantages
• Lower salary (is it still after taking into account insurances?)
• Cannot deduct nearly as much
1099 (Seeking to go S-Corp, but would like other opinions of better options)
Benefits
• Higher salary (is it still after taking into account insurances?)
• Many more tax deducations and write offs, allows me to bring more home after tax
• Potential to grow by looking for other jobs and hiring, which is a posibility down the future
Disadvantages
• Need to pay for my own insurances ( as required by the hiring company, i can get what i need for under 3k a annually, but i have not weighed in how much health insurance would run me, i assume that would be the bulk of the expense, but assuming the extra 40k from going 1099 would cover that?)
• More overhead and work to take care of (but hopefully turbo tax and quickbooks can make this easy)
