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motheroftwoinga
Jul 22, 2009, 08:13 PM
I am interested in a job where most of the income is in bonus and "store override" the bonuses will be for $10,000. Each and I could expect aprox 4 of them. My base salary is small and I will receive 2% override of whatever the store sells. I am trying to calculate my take-home earnings. Please help.
Thank you very much.

MukatA
Jul 22, 2009, 10:53 PM
First you need to find out if you are an employee or an independent contractor. Or a part of your earning is reported on W2 and part on 1099-misc.

motheroftwoinga
Jul 23, 2009, 05:54 AM
I will be an employee. It is for a store manager. I live in GA and I don't know about the W2/1099 misc. which is better?

MukatA
Jul 24, 2009, 12:09 AM
An employee gets W2 and an independent contractor gets 1099-misc. On W2 the employer must withhold Social Security and Medicare taxes.

On 1099-misc, you will pay 15.3% SE tax instead of 7.65% withheld from W2 income. Thus you pay about 7.5% more. The advantage of getting 1099-misc is that you can directly deduct your business related expenses on schedule C or C-EZ. On W2, you can take business related exepenses only as itemized deduction
Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)

motheroftwoinga
Jul 24, 2009, 04:24 PM
Thank you so much for your help.