Money WondersPlay

Work & the Rat RaceTaxes

W-2 or 1099

Employee or contractor changes your taxes

Two people earn $50,000 for the same work. One is an employee, one a contractor. Why does one owe the government thousands more?

You'll find out

  • The tax your employer pays for you
  • Why a contractor pays twice the rate
  • What a contractor bills to break even

Why it matters

The same pay can land very differently depending on one form. Knowing how changes what a number on a contract means.

About 3 min6 interactive slides · 5 questionsLesson 157 · Zone 18

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