I am trying to figure out if it is possible to work as an independent contractor for a hospital as compared to going through an agency as an agency nurse. Barring all the logistics of negotiating a contract, setting up a business entity, jcaho compliance, credential maintenance, arranging acceptable billing and other things, is it possible? I am finding that it may not be possible primarily due to federal, state and employment tax laws. Currently, hospitals pay their staff's employee taxes and agencies pay their agency nurses' employee tax. As an independent contractor, the hospital would not be required to pay the employee tax. Does anyone know if the business taxes the independent contractor would be paying would be a sufficient substitute for the nonpayment of the "employee taxes?"