1099 vs W2s

[Guest guest]

Hi,

I tried to look in the melist files and came up more confused.

I have an 8year old, in 2nd grade at a private school. She is in a regular

classroom with a full time aide. I pay the aide from my pocket. This is her

only job. She averages about 40 hours a week including a few hours of home

therapy after school. I have been running a home program for 6 years now. I

have been giving 1099 forms for my therapists who made more than $ 600 a

year.

My daughter's school aide has been with us for over a year. She had recently

had her taxes done with the help of an accountant and has realized to her

shock that she owed a lot more in taxes than she had estimated when she

negotiated the pay with me. She concluded that this self employment thing is

not going to work for her and had asked me to look for someone else soon.

She believes she is better off as an employee than self employed.

I would like to negotiate with her and help her with her taxes as much as i

can even if that means making her an employee and giving her W2 forms and

paying the employer part of Social security taxes. Even with this offer she

is hesitant because she feels she is still somehow losing more money in this

job. She doesn't have the facts right and neither do I. I would like to

explain to her that all that she is losing by being self employed is the

employers part of Social security taxes which she was ending up to pay. But

I am willing to help her with that.

We ultimately may have to consult an accountant but in the meantime if any

if you could enlighten me with some facts I might be able to convince her

not to react hastily and agree at another job.

What is she losing by getting 1099 forms? What are her advantages if she was

employed and received W2 forms. What are the losses or hassles involved for me

if I gave her W2 forms. I want this to be a win win

situation for both of us.

Thanks for reading this,

Mahija