1099 vs W-2

[psychoticjordan]

Hey all,

I am considering a career change. I currently make about 40k before taxes, and I have a W-2. I work in healthcare. From what I can tell, most shop owners do not pay hourly and most groomers use 1099's- is that true? If so, how much more do you end up paying in taxes every year? I know 1099's require you to pay more like 15% in taxes vs. the 7%-ish you pay as someone with a W-2. This concerns me. How much money are you paying on average when taxes come as a 1099 worker?

 

[imagebeastmarkbeast]

@psychoticjordan I think the number is 98% of "1099" groomers are illegally classified. I unfortunately had to go about a year under this false classification, as I had no other options. I fortunately have since found a legit salon that does things right. I will be completely honest..unless they wanna pay you 60%-70% commission, you are going to have a hard time with taxes. I literally am going to have to lie a great deal once I have to turn my info in just to come out with a profit. I would definitely suggest you please find a salon who does w2, not only because it will end up costing you a ton more in taxes (basically, twice as much), but also if your salon owner is caught by the IRS they will most likely have their salon shut down and you are out of a job without warning. I was terrified of this, because one of the salons in my city was closed down recently for this very reason. Commission is normal in w2 jobs, also. With w2 jobs, look for around 50% commission. If you have no other options but a 1099 job, definitely do not take less than 60%, because not only are you pay 7% more in taxes, but you will most likely need to hire an accountant to help you with tax write offs so you don't drown in taxes.

 

[psychoticjordan]

@imagebeastmarkbeast Oh my gosh thank you so much! I will absolutely be looking for a salon who does W-2's now.