My workplace is being bought out by a corporate company and my position is being dissolved. The doctors I work for are potentially offering me a 1099 Contract position that will be somewhat of a promotion for their private company outside of the corporation. This job would be a promotion to a management position. My employers are not trying to avoid taxes or avoid paying me benefits, although I would be losing benefits. I was offered a comparable position as an employee by the corporation doing more work for the same pay, but with benefits so I’m weighing my options. Considering I would be losing benefits and paying higher taxes, how much of a raise should I ask for and what type of things should I ask for in regards to a contract, etc. ? The contract position would be better “make my own” hours and some working from home…
I was a 1099 employee for two very different businesses in the past - a large health care management org and a small social services office. In each case, I saved 10% (adjust for your situation and newer tax laws) of my paycheck as a safeguard to pay income taxes for the year. I’m not sure what you’re referring to by “paying higher taxes” unless you mean the burden falls to you to manage your tax liability out of your check.
RE: benefits - if I could go FT where I work now (I’m PT) our family’s combined savings in premiums/deductible/copay expenses for an average year would be more than halved. More importantly (IMO), factor in retirement benefits and the savings you may have to absorb out of your paycheck to offset what the employer would have contributed and/or matched.
It’s a lot of math to work through, but it reflects well on you that you’re in demand with two options in front of you. GOOD LUCK!
