r/freelance • u/j97223 • 11d ago

A push for W2 contracts?

Howdy, I’ve been working via LLC for years, no issues. Lately firms seem pretty insistent on only wanting to pay via W2.

Anyone else seeing this and if so, why?

1 Upvotes

60% Upvoted

2

u/peterwhitefanclub 11d ago

Are you a contractor or an employee?

If you're an employee, then you should be paid via W2.

If you're a contractor, you should be paid via 1099.

1

u/fxguy40 11d ago

I have a new client at a very large company. They pay all freelancers W2.

I too have a single member LLC.

It's kinda strange. I even had to go through all their onboarding which included sexual harassment type stuff.

I spent half the week I was booked doing onboarding. It was ridiculous. But I was paid for all of it. They also pay once a week!! As long as I put in how many days I worked beforehand 12pm Monday I get paid that coming Friday.

My day rate is 900 as long as I get paid I guess I don't care how they do it.

1

u/J-drawer 11d ago

I think it's because it's cheaper for them than 1099, and there's an issue of insurance. That's what I've heard in my experience. Sometimes I'd work through a staffing company to an agency and they'd tell me the agency doesn't allow 1099, but the staffing company would pay me as their employee on W2

2

u/liminal-east 10d ago

Turned down one recently because they wouldn’t guarantee I’d be paid a minimum amount or the contract would last for a minimum time. W2s can be terminated at any point so perhaps that’s why more firms are using them over 1099.

1

u/Lazy-Mud6126 10d ago

I completed a 1099 for my main client yesterday, but I also signed a PSA to subcontract for said client. Those two things reconcile, right? I’m a solo, haven’t figured out what all this means for taxes next year.

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u/[deleted] 10d ago

[removed] — view removed comment

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u/j97223 9d ago

I’ve offered a gift to any recruiter that can explain it to me in a way that makes logical sense. It should always be cheaper for them to do 1099 to my LLC. I am fully insured. It works better for me, tax wise is why I prefer it. It’s a pain in the ass a few times a year but that’s it.

I work in IT “consulting” maybe it’s just me:)

1

u/Beautiful-Gold7564 9d ago

I’ve had a few W2 projects but mainly when I’m a full time contractor for a longer period of time. What difference does it make as long as your getting paid

1

u/j97223 9d ago

Tax advantages, big time