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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.
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