<prompt> Human: Hi all, new poster here but I didnt see anything in the FAQ that could address my question.I am a 23 year old new grad, BS in Mechanical Engineering. Three months ago I took a temp-to-perm job through a recruiter, doing some opto-mechanical design work. The company is very small, and Im getting some good experience and would like to stay here for a few years if possible.So to the point: my boss has offered me two full time packages. I can:go on 58,000 salary, 5 vacation days, 5 sick days, pay 100 for healthcare per month, retirement plan TBDORWork as a contractor, earn 35hr with no benefits, no overtime.The way I see it, 35hr will come to roughly 70k per year, so if a personal healthcare plan, retirement savings, and lets say 3000 worth of vacation time come to less than 12k 70k-58k, then going on contract will earn me more money. All that being said, Im very new to the professional working world and the world of finance. Is there anything Im forgetting to consider?EDIT: One potentially important detail I left out is that my boss, although he wants to grow the company, currently owns his own business and has no full time employees. Thats why I dont know the specifics of what kind of retirement plan matching he might offer - he doesnt exactly know yet.Assistant: If you are a 1099 contractor, you will also have to pay employers portion of FICAMedicare taxes of 7.65, in addition to the 7.65 youd pay as a W2 employee. Thats about 5300 reduction from your expected 70K salary. Under those circumstances, I would take a salaried position, but keep my eyes open for a job with better benefits. Human: Wow, thats exactly the kind of pitfall I was afraid of. How can I find out more about this? And should I come out and ask my boss if thats the case?EDIT: A little research makes it seem like as a contractor I am technically self employed, and self employed individuals only pay 7.65. What am I missing?  <response>: As a 1099 you definitely have to pay 15.3 in taxes. In addition to that, as a 1099 contractor, you will have to pay estimated quarterly taxes 4 times a year. Your employer offers this option since it significantly reduces the amount of work he needs to do. He basically cuts you a check, and hes done with everything. As a W2 employee, he needs to pay employer portion of your social security taxes, withhold income taxes on your behalf etc. If I were you I would not accept 1099 position without being paid 40hour instead of 35 he;s offering. 