I've been working as a 1099 employee for about 2.5 years on a side gig for $20/hr and now the company has to switch me to W2 at the same $20/hr rate.
Shouldn't there be about a 20% change between 1099 and W2 for tax purposes? Either my W2 hourly should be much higher than $20 or it means I've been working for $16/hr since I've been on 1099 factoring in taxes?
I asked my manager his response was...
"You have always been 20 per hour as a 1099. It's the same. When you do your taxes at the end of the year you pay the same taxes with 1099. With w2 the taxes are taken out beforehand"
Is his statement correct?