1099 vs. payroll: Which is better for side gigs at a country club?

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December 18, 2024 at 9:06 am #114374 Reply
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My wife is going to do social media services as a side hustle at our local country club. We both are W2 employees elsewhere.

The country club is asking if she would prefer to go on payroll or be a 1099 employee.

Does anyone see any benefits of one way vs the other?
Someone told me if she was 1099 she could expense travel to the country club.

Any thoughts or ideas welcome.

Thank you!
December 18, 2024 at 9:06 am #114375 Reply
Irene
As a 1099, she will be responsible for paying fica taxes at a higher rate (twice the amount that is deducted from an employee’s paycheck) since there is no employer paying the other half.

Most companies will adjust the pay rate accordingly.
December 18, 2024 at 9:07 am #114376 Reply
Tricia
If she will have a lot of income from 1099 check with your accountant about quarterly tax payments.

Don’t get stuck owing 25k like we did one year when my spouse did 100% 1099 work!
December 18, 2024 at 9:07 am #114377 Reply
John
1099, 100%. Start writing off all the things. Make sure to disclose any outside business dealings to her W2.
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