@2cj WRONG! Obviously you don’t understand how 1099 works! We pay all the taxes, federal, state and FICA as a small business. Many of us are already w2 through our LLC / s corp. Meaning we control how much we pay taxes based on our contributions/pay that we issue ourselves throughout the year. We file 1099 business taxes and w2 personal taxes. Now if we go straight w2 trough the firms aka the problem the we lose the option to run trough our LLCS and lose all the tax write offs and breaks we utilize to minimize the tax burden as a business owner. If you don’t understand how this even works why are you offering an opinion.
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If 1099 contractors dont pay taxes, guess who gets the bill. The operator. Theres plenty of workers willing to take your place, dont let the door hit you on the way out.
@eg all the contractors are actively looking for other opportunities. And several have already quit Devon.
@fp this is not accurate. It’s $2,600/day plus travel and lodging. No vehicle allowance. Still not enough for W2 to out earn a 1099 at the lower pay.
@fp on the completion side it’s only $2600 a day plus travel and lodging. No vehicle compensation. Increased fees from firms and doubling our taxes because we’ll loose our deductions and the ability to run our s corp as a w2 controlling the employment taxes. FINAL VERDICT: Devon’s increasing their cost for us by around $50,000,000 a year, just so we end up taking home roughly 20% less. So they spend more we get less. Uncle Sam and the firms reap the benefits. They have lost 20 on drilling from superintendents to drilling consultants. Production has put them on notice along with completions. Someone needs to be removed before it gets out of hand.
@f6 you’re absolutely wrong, but you don’t know that Devon raised contractor pay to 3K a day for completions, plus lodging, Travel, and 800 a month for a vehicle allowance if you go W2 through the firm.
@eg it would be cheaper to go to 5-2 work schedule and not need half the workers that is required on a 8-6
The Coterra group argued their point about past lawsuits they lost to contractors suing the operator for lost over time wages. So now all Devon 1099 contractors have to go W2 with the firms.
i think the plan is a Try before you buy deal with the contractors, hire them through a firm then if they work out hire them into devon..... get off the 8/6 schedule and we wouldn't need as many contractors.
@OP explain more? specific circumstance or location? I know several Coterra contractors.