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1099 or W2

 
Greenhorn
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I'm looking at an offer that gives me a choice between going W2 (employee of placement agency) or 1099 (contractor through consultanting agency).

The 1099 route would pay about 23% more than the W2 route. As a 1099 contractor, I think I'll have to pay my own taxes, including Social Security tax, and that I'll have more opportunities for business expense write offs.

I don't have an accountant, yet (because I don't have the income, yet). I understand that most visitors here are probably not accountants, but you probably have some related experiences that I'd enjoy reading.

Any thoughts on which route to take?
 
blacksmith
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Take the 1099, unless you get other benefits you need (e.g., health insurance) on the W-2, unlikely if you're working as the employee of a placement agency.

On 1099, you'll have to pay an additional 7% in self employment tax (essentially the employer half of Social Security), but that's more than outweighed by the difference you mention.
 
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