New one! I think that the fact you didn't know about this until now is real significant.
The W-2 part is the amount your EMPLOYER will use to calculate his share of your SS payment. You pay the other half.
The 1099 part is the amount you, the SELF EMPLOYED contractor pay both portions of the SS as a self-employment tax.
I'd really like to see an explanation of how this deal is possible. If you are an employee your employer provides truck and tools and everything. He pays you wages you both have aggreed upon. As a contractor you bid against others for a contract price. You provide labor, materials, equipment, insurance and all the rest. What is left is your before tax profit. The 1099 is the amount your client is reporting to the IRS.
New one!
Joe
