Can a worker on E3 visa be a contractor using 1099?
E-3 visa holders can do contract or freelance consultant work but only through a sponsoring E-3 employer. So to answer your question, NO you cannot be a 1099 contractor on the E3. You will need to be on a full normal payroll as under the E-3 scheme you must be an employee of the sponsoring company.
By using a professional employmer organization (PEO) or contractor management company (CMC), similar to an Umbrella Company in Australian terms, you can still maximise your earnings whilst claiming relevant deductions for business expenses.
For answer to your question read this E-3 visa – Wikipedia, the free encyclopedia YOu should also learn the difference between W2 wages and 1099 income: 1. W2 — you are an employee. From your income social security and medicare taxes are withheld at 7.65%. You normally can’t claim expenses associated with the job unless you itemize your deductions. Also your business related (job related) expenses are subject to 2% AGI limit. 2. 1099 — you are independent contractor. On your income, you will pay social security and medicare taxes at 15.3%. If you have expenses associated with this job, you file Schedule C on which you record your income and expenses. 3. With 1099, the employer does not have to pay their part of employment taxes of 7.65% and some other taxes. They save headache of keeping another person on their payroll.
