How are 1099 paid?

[Ogliodendrocyte]

I will be taking a position as a 1099 through a national company- they will keep a percentage of my billings. Rudimentary question- who am I receiving my paycheck from, the national company or the insurance?
Also, I'm looking into having a payroll service do self employment tax withholdings- they will file quarterly taxes as well. They can also set up automatic 401k deposits from each paycheck. Curious if anyone has had any experience with this as full time 1099?

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[PMR2008]

The company. Most accounting firms will do the withholdings, 401K etc. Many options. These guys are low fee and great service. sourcefinn.com

 

[Ogliodendrocyte]

Appreciate the recommendation. So do you just have the company send the check to the payroll service then they do all the withholdings- SE tax, 401k, HSA etc Then relay whats left over to you

 

[PMR2008]

Check goes to me. My accountant has access to my account and they do the rest.

 

[RangerBob]

It's pretty easy to calculate/pay your estimated taxes and monthly 401k deposits. I was using an accountant to file my yearly taxes (and tell me the estimated payments, which I then made). Then I realized that I was pretty much doing all the work anyway, so after talking with a bunch of other docs in the same situation I'm just going to use TurboTax and do it all myself (I'm 95% done filing for this year already--just waiting for a few tax forms).

Of note, I don't have any rental properties, major investments, etc., that could make things complicated enough for the accountant to be worth it.

It's worth learning the finance stuff on your own. It's scary, but doable. WCI is a great starting resource.

Keep in mind that your business setup could make a meaningful difference in your income. If you're just doing 1099 work (nothing else), sole proprietor is often the cheapest/simplest option and also maximizes your 199a deduction. In many states (like mine), LLC's aren't allowed, and you pay an extra tax if you're an s-corp. On the other hand, some companies/hospitals won't do business with you if you're not incorporated. Thankfully my hospital doesn't care.