Why misclassified say if the OP signs a 1 year contract where they can bill up to 40 hours a week, and must use a computer provided by the employer for security reasons."Full-time contracting with equipment provided by the company" is probably a misclassified employee.But if the situation was reversed, would you say that going from 1099 to W2 (with the same minimal benefits) should be half the pay?2x is a typical indirect rate multiplier for government contracting, slightly less if the work is done onsite. OP needs to think of himself as a business with overhead, admin, and marketing expenses. He should not set his multiplier assuming he will bill 100% of his hours, that his computer, software, and office space are free, and that he deserves the same paltry benefits he got at his current job.I agree to shoot for the moon but 2x salary seems high to me considering the W2 (in this situation) doesn't have many benefits beyond the 401k match and PTO.
If the OP was consulting with multiple clients and short terms projects, then I'd agree with at least 2x -- it's more like a business. But with full-time contracting (1 year contract, 40 hours a week), the extra time/expenses are likely minimal. I'd also be surprised if the organization didn't provide the computer and software for security reasons. I guess the OP will know more of the details, but that's been my experience with contracting and consulting.
I don't think it's black and white - https://www.irs.gov/businesses/small-bu ... r-employee
There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination.
Statistics: Posted by ThankYouJack — Wed May 08, 2024 9:07 am — Replies 18 — Views 1282