Posted: 4/25/2013 8:25:40 AM EDT
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I've got a former employer that wants to bring me back, but rather than bringing me back as a W2 they want to do it with my LLC being contracted to provide my services. I setup the LLC for fun money so I've never really done any math to know how much I should bill to equate to the W2 salary.
What's the rule of thumb again? |
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Quoted:
I've got a former employer that wants to bring me back, but rather than bringing me back as a W2 they want to do it with my LLC being contracted to provide my services. I setup the LLC for fun money so I've never really done any math to know how much I should bill to equate to the W2 salary. What's the rule of thumb again? http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center |
| Talk to an accountant. Or maybe your boss should. If you convert from w-2 to 1099 with the same employer within too short a time frame, IRS will often view that as an attempt to circumvent withholding and FICA and "rule" that you are still an employee. You can convert form 1099 to W-2 without much trouble, but there are hooks going the other way. Suggest you get professional advice. |
| Yea, I don't think this is going to work out. We are jumping though all of these hoops because the director of HR doesn't like me and has declared me non-rehire eligible. And I know that she should FLIP if she saw me in the building with a badge. The explanation that I'm just a contractor probably wouldn't even fly with her. |