You'll need to sign in or create an account to connect with an expert.
Their half of Medicare and social security taxes is 7.65% of your salary. 23/25 = 92%. So, your net pay is about the same as it was before.
It appears, you are coming out about even. However, if you were deducting any expenses against this income, those deductions will be more limited as a W-2 employee and the net tax effect will be less take home pay.
I suspect the change is a result of a legal challenge. Somebody (possibly the IRS or State labor dept.) was complaining about you being classified as a contractor and not an employee.
Their half of Medicare and social security taxes is 7.65% of your salary. 23/25 = 92%. So, your net pay is about the same as it was before.
It appears, you are coming out about even. However, if you were deducting any expenses against this income, those deductions will be more limited as a W-2 employee and the net tax effect will be less take home pay.
I suspect the change is a result of a legal challenge. Somebody (possibly the IRS or State labor dept.) was complaining about you being classified as a contractor and not an employee.
That is a legal question, not an income tax one.
But, unless you are subject to a collective bargaining contract, they they only have to pay you minimum wage for your state.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jose733b
Level 1
graphicglobe736
New Member
MojoMom777
Level 3
hbnana22
New Member
kczap4
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.