Not a tax question, but factoring in vacation time and the employer portion of social security and medicare payments alone, the W-2 job seems like a no-brainer, especially if there are other benefits like health and disability insurance, or employer 401 (k) matches.
Not a tax question, but factoring in vacation time and the employer portion of social security and medicare payments alone, the W-2 job seems like a no-brainer, especially if there are other benefits like health and disability insurance, or employer 401 (k) matches.
Need to add detail. The W2 position has no benefits (health, 401k). I'm purely asking in terms of tax difference per social security and medicare.
Then, you lose net of slightly less than 6% of your income from having to pay the employer portion of medicare and social security tax (it is not 7.65% because you don't pay self-employment tax on all your self-employment income, and you get a deduction for half your self-employment tax).