Compare reported 1099 and W2 pay before a discussion

A discussion about moving to W2 can mix service sales, calculated technician pay and take-home pay. W2 Transition Check helps put the assumptions side by side, starting with the figures you already know rather than treating a suggested split as a decision.

What to prepare

Prepare recorded or reported 1099 figures, the current service-pay split and the other requested inputs. Clarify whether fees are taken off the top before the split or applied afterward. Keep definitions consistent across scenarios.

How to use it

• Enter the current scenario and verify that its basis matches your records.
• Review the W2 comparison and open the explanation of how each figure is calculated.
• Explore a different split while holding the other assumptions constant.
• Take the comparison and unresolved questions to your CPA or payroll provider.

An example to check

A 60/40 split can produce different calculations when two people mean different things by “before fees.” Resolve that definition first; otherwise a negotiation may be comparing unlike amounts.

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Next step

Try an illustrative scenario first, then repeat with reviewed figures and a written list of questions.