Hi there. I'm not sure if there is really a way to "standardize" 1099 vs. W-2. You'd have to take into account things such as benefits, deductions available to you, retirement planning, etc.

As a 1099 independent contractor, you have much more flexibility than you might think. For example, you MIGHT qualify for a home office deduction. Other examples are supplies, equipment, biz meals, travel, professional fees, licenses, malpractice insurance, professional education and training, etc. As a W-2 employee, these types of expenses will be limited or of no tax benefit at all to you.

As a 1099 independent contractor, you are responsible for all your own taxes - there is no withholding. In addition to your regular tax, you would pay a "self employment tax" of 15.3% of the first $94,200 (for 2006) of your net profit and 2.9% after that. In addition, you would get a deduction for 1/2 of this tax paid. This tax is roughly the equivalent of the FICA tax you pay as an employee through withholding, however it ends up being slightly more.

Finally, you should determine what benefits you'd be responsible for on your own as a 1099 independent contractor. Health insurance is a biggie. If you were interested in setting up a retirement plan, you'd be able to sock away a lot more on a tax dedutible basis as a 1099 independent contractor.

All factors need to be weighed in order to make an informed decision. However, as a 1099 independent contractor, the costs are much less to the "employer". Therefore, you might be able to negotiate a much better compensation package to account for a lot of the costs you'd have to incur personally.

Please let me know if you have any other questions.

Harry

Zip Code: 11797