Latest news with #W2
Forbes
05-08-2025
- Business
- Forbes
Financial Considerations Of Contract Negotiations For A New Job
When you are considering a new role, there are so many aspects of financial compensation beyond just salary. It's critical to understand and negotiate not only your base salary, but also bonus options, retirement plan options, insurance, and equity compensation. These are the financial considerations of contract negotiations for a new job. Understanding Your Worth Nowadays, understanding the going rate for your role has gotten easier than ever. Between LinkedIn, Glassdoor, and other job sites, you should be able to find a benchmark for salary and benefits for someone in your role with your experience level. Once you have an understanding, you can open negotiations with a fair target in mind. Employment Type Typically, employees are faced with two types of roles: contractors and W2 employees. Contractors typically receive no benefits to minor benefits, paired with a higher salary or commission-based payout. Contractors also usually pay higher taxes per dollar earned, are not entitled to severance, and cannot collect unemployment if they lose their role. W2 employees typically receive health insurance and a retirement plan at a minimum on top of a base salary and other compensation opportunities. If you're looking at net compensation holistically and want to work for a single employer, a W2 role will typically yield the best results. Bonuses When discussing bonuses, it's essential to define metrics for how the bonus pays out. I've seen companies offer employees a 20% performance-based bonus, the person performs above and beyond their job requirements, and the bonus never pays out because the performance threshold was never defined. You'll also want to understand if the bonus is paid in cash or equity compensation. Typically, when you're looking at equity compensation, there are additional considerations regarding liquidity, risk, and taxation. Once everything is to your satisfaction, ensure the language is included in your contract. Equity Compensation How valuable equity compensation is really depends on the company itself. Privately held companies with no hope of ever going public cause shareholders to face significant liquidity risk because they would need to locate a buyer before they can sell their stock. Stocks traded publicly on an exchange are priced daily and match buyers and sellers, making it possible to have cash in hand within a day of choosing to sell. In a contract negotiation, most people want to maximize their cash compensation and have the equity compensation as icing on the cake. The most common forms of equity compensation are as follows: Typically, restricted stock units are doled out as sign-on bonuses and ongoing incentives to stay with the company for a longer time. They also most closely mimic direct compensation out of all these options. Stock units come with vesting schedules so if you leave your employer while the stock is still unvested, you are no longer entitled to that stock. They are also taxable as income as they become available, so if your equity compensation is large and your salary is low, you may be forced to liquidate or pull from other sources to cover your tax bill. Insurance Benefits Independently insuring things like healthcare and disability can come at great personal cost. Having sound insurance benefits in line with yours and your family's needs are critical in negotiation because without coverage, a single event can completely dismantle your entire financial plan. Retirement Benefits At this point, most employers must offer W2 employees some form of a retirement savings plan. For many companies, this comes in the form of a 401(k). For select individuals and executives, you may be able to negotiate higher profit-sharing levels or other executive compensation plans like deferred compensation, which is additional compensation that is tax-deferred, usually until retirement. Contractors are in a different position. Like with insurance benefits, many contractors aren't entitled to retirement benefits but that doesn't mean they can't negotiate. I recently met with a woman who is a top-performing salesperson and an independent contractor. Even though the woman is a top performer, she had historically struggled to save money. Then, the employer decided to allow contractors to have a percentage of her commission checks go directly into their personal retirement plans. This change made it so she could meet her retirement goals in a disciplined way while remaining a contractor. She's also said that if she ever moves employers, she will ensure this type of arrangement is included in her contract. Conclusion When negotiating a new job contract, financial considerations extend far beyond salary. By evaluating bonuses, equity compensation, insurance, and retirement benefits, you can secure a package that aligns with your needs and goals. Understanding your worth and employment type is key to navigating these discussions effectively. A well-negotiated contract ensures long-term financial stability and career satisfaction.
Entrepreneur
11-06-2025
- Business
- Entrepreneur
Her Side Hustle Out-Earned Her Corporate Salary — Now It's a $2 Million-Dollar Business
Two years. That's how long it took me to build a short-term rental business that replaced my six-figure corporate salary and gave me the freedom I craved. But let's be clear — this wasn't some lucky break or overnight win. This was a journey of intentional action. I started with one property, stacked my wins and leaned in every time an opportunity whispered, "Let's go." When I started, I didn't have it all figured out. I didn't have a five-year plan, a business degree or a crystal-clear vision. What I did have, though, was a gut-deep knowing that I wasn't meant to be stuck in a job that drained me. I wanted freedom — real freedom — and was willing to take small, smart steps to create it. That journey led me to write LIVE BIG, where I share the exact blueprint I used to leave my W2 job behind and step fully into entrepreneurship. And here's the truth: If I can do it, so can you. Related: Her Dorm Room Side Hustle Put a New Spin on a Closet Staple. It Led to $60,000 in Sales Overnight — Then Over $1 Million.
Washington Post
14-05-2025
- Business
- Washington Post
Help! My son's Social Security number was stolen. Now he has a fake W-2.
For many, the anxiety around taxes extends beyond the traditional April 15 deadline. As official notices from the IRS begin to arrive, a different kind of worry takes hold — the unsettling prospect of an unresolved issue, an unexpected tax bill, or questions about a return. This was the case with two readers calling into my Ask Post line looking for advice. One involved a late return; the other, an erroneous W-2.
Yahoo
08-05-2025
- Yahoo
San Angelo airport director reminds passengers are now required to be REAL ID compliant
SAN ANGELO, Texas (Concho Valley Homepage) —Texas residents with upcoming travel plans are now required to present what is called a REAL ID to be able to board an airline. Justin Fletcher is the San Angelo Regional Airport Director and says passengers should double-check if their IDs are compliant before going to the airport. 'What that means for passengers when you are coming through the airport, if you are a Texas resident, it simply means that your driver's license has to have the gold star in the top right-hand corner,' Fletcher said. The Texas Department of Public Safety reports that as of this month, the state of Texas is 98% compliant compared to other states reporting compliance in the teens. If you do not see that gold star on your license, it's time to make the change, as Fletcher says a non-compliant ID could cause some delays at airport security. 'If you are flying without a REAL ID…you haven't had your ID transferred over just be aware there will be additional screening required…if you do have a REAL ID or you have a passport you'll be able to flow right through security,' Fletcher said. In Texas, the department of public safety does not allow expedited appointments to obtain your REAL ID. Fletcher says there are other documents that you can present in place of a REAL ID to prove your identity. 'You'll need to provide a document that has your social security number on it…so a W2 or a pay stub…any of those documents that indicate your social security number,' Fletcher said. Fletcher says that San Angelo is a smaller community, and he has seen little to no passengers out of compliance. He still stresses the importance of having a REAL ID to make the boarding process easier for the passenger and TSA officers. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to
CNBC
01-05-2025
- Business
- CNBC
How to get a mortgage if you're self-employed
Applying for a mortgage can be difficult, especially for people with nontraditional income sources, like self-employed workers, small business owners, gig workers, freelancers and anyone else who doesn't receive a W2 from an employer. "The typical mortgage broker has a checklist," Keith Hall, president and director of the National Association for the Self-Employed (NASE), told CNBC Select. "They want to see how long you've been at your existing job, as well as two years' worth of pay stubs." When you're self-employed, "your income isn't as even as someone who gets a regular paycheck," Hall added. So, self-employed workers must "paint a story" of their business and its future, he said, to assure lenders that they're creditworthy. Sole proprietors, independent contractors, partners in a business, gig workers or those who own a business part-time are all considered self-employed, according to the Internal Revenue Service. Generally, anyone who brings in income by doing work that's not documented on a W2, is considered self-employed. Most borrowers want to see that you've been self-employed for at least two years before they consider you for a mortgage. In addition to the documents that everyone needs to apply for a mortgage, such as bank statements and identification, self-employed applicants will also need to provide additional documentation to potential lenders. You'll need to show how you earn your income. You can do this by getting a letter from a certified public accountant, showing your business license or proof of business insurance. If you're a freelancer, a letter from a professional organization verifying your membership or a letter from a client will also suffice. Lenders also want to know as much as they can about the state of your business. You should provide them with bank records, profit-and-loss reports and cash-flow statements from the past two years. Hall said you may also want to include documents from your accounting software, such as QuickBooks. Lenders will also need to see your tax returns for the past two years as well as tax forms, relating to your business type — Schedule C for most LLCs and some sole proprietorships, Form 1065 for general partnerships and Form 1120 for C Corporations or S Corporations. You'll make a stronger case if you can show that your business is expected to grow, Hall said. So bring your business plans for the next few years. You can reach out to a self-employment or small business expert through NASE, the Small Business Administration or the Internal Revenue Service to ensure you have everything you need for your mortgage application. If you're self-employed or have unpredictable income, you'll have a better chance of being approved for a non-qualifying mortgage (non-QM), home loans that have have more flexible terms and accept non-traditional income sources. Examples of non-QM loans for self-employed borrowers include: Bank statement loan: A bank will consider your mortgage application based on your bank statements for the past two years rather than your income tax forms, such as a W-2. Profit-and-loss loans: A bank will consider your mortgage application based on your business' profit-and-loss statements rather than your income tax forms, such as a W-2. Investor cash flow loans: Also known as a debt service coverage ratio (DSCR) loan, this type of mortgage is specifically for real estate investors. A bank will consider your mortgage based on your rental analysis, rather than income or even employment verification. CrossCountry Mortgage offers all three, as well as several down payment assistance programs. Fixed-rate and adjustable-rate available, apply online for rates. Conventional loans, FHA loans, VA loans, USDA loans, Jumbo loans, manufactured home loans Apply online for terms 620 for conventional loans, 500 to 580 for some government-insured loans 3% New American Funding also provides non-QM loans to self-employed applicants. Borrowers can qualify using bank statements, profit and loss statements or tax returns. Apply online for rates. Conventional, FHA, USDA, VA, jumbo, refinancing, home equity loan, reverse mortgage 10- and 30-year fixed-rate terms and various adjustable-rate terms 620 0% for VA or USDA loans, 3% for conventional, 3.5% for FHA If you're worried a lender will take one look at your financials and reject your application, there are steps you can take to increase your chances. Local banks are much more likely to provide loans to local small business owners, Hall said. "The smaller community banks are more involved in the community," he said. "If you're operating a plumbing operation or a small restaurant, there's a reasonable chance that a banker has been to your restaurant. They're more familiar with the community." Lenders consider an applicant a safer bet if they make a larger down payment and have more savings in reserve. This shows lenders you have steady income and a lot of cash savings. The average down payment for first-time homebuyers is 9%. If you don't have a lot saved, consider down payment assistance programs. You can also make yourself a more attractive applicant by raising your credit score. Most lenders require a credit score of 620 for a conventional mortgage, but borrowers with a score of 760 or higher typically get the best rates. All three credit bureaus — Experian, Equifax and TransUnion — consider payment history, debt repayment and your credit utilization rate when determining your rate. By making on-time payments, paying off debts in full, catching errors on your credit report and keeping your credit utilization under 10%, you can significantly improve your credit score in a short amount of time. Separate your work and personal life — that goes for your finances, too. This makes it simpler for lenders to assess your business income and your personal finances. According to the Small Business Administration, you can do this by opening a business bank account, getting a Data Universal Numbering System number (which allows you to build credit for your business) and getting a business credit card. If all else fails, you may want to ask a loved one to cosign a loan with you. This means they promise to pay the lender if you fail to make the payment. Being a co-signer is risky and consequential. A cosigner is responsible for repayment but does not own a portion of the house. It also impacts the cosigner's credit score. Yes, but it will require additional paperwork, including financial documents, tax documents and future business plans. Typically, you should be able to show two years of steady work or self-employed income to be considered for a mortgage. Yes, getting a home loan as a self-employed person can be more difficult. However, there are banks that provide non-qualifying mortgages that don't require W2s. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
