1099 vs w2

  1. Please tell how to convert w2 salary to 1099 pay range?Let us suppose w2 is 200K.What should be its equal 1099 equivalent?Furthermore If job gives malpractice insurance and I get health benefits from from my spouse,then what will be the best comparison.I have heard that it should be around 11% more as 1099 than w2.Is that notion right?Thanks
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  2. 6 Comments

  3. by   lhflanurseNP
    A 1099 reflects actual salary received. A person getting a 1099 is a "contract" worker and is responsible for their own taxes, insurances, education, etc. These need to be itemized so they can be deducted as "cost of doing business". The 1099 is ONLY for what you received in payments from wherever you work.
  4. by   Gassadist
    Sorry I could not understand. That's why I asked as an example in my question
  5. by   rnmaybe
    I would say 20% would be more like it so that would be equivalent to about $240k as 1099 employee
  6. by   offlabel
    Just my retirement and family med/dent coverage is nearly 50K/year. That doesn't include Social Security, malpractice insurance, disability insurance or life insurance. Nor does it include federal or state taxes. Very generally speaking, a 1099 of 200K might come into the general neighborhood of 140-160 W2 depending on how you played the rest.
    Last edit by offlabel on Jul 3
  7. by   BigPappaCRNA
    11% is drastically low. Just by being a 1099 you will have to cover your employers FICA contribution. This year that would be an additional $8,636 on your tax pill in FICA. Add to that vacation, ed leave, med insurance, dental insurance, vision insurance, life insurance, disability insurance, CME money, etc. all must be considered. Most 1099 jobs require about 25-50% additional to make them better, although, they do open things up to a world of tax advantages. Also, just because your spouse is providing the health insurance, doesn't or shouldn't mean you should accept less for your services.

    One final note, you might check about the malpractice component. If that is the only hospital in which you work, and they are supplying your insurance, you will be considered a hospital employee, regardless of the form designated to pay you. This means that you would not be able to take advantage of a lot of the benefits that come with being a 1099.
  8. by   Bluebolt
    Wow I didn't realize there was such a discrepancy between the 1099 and W-2 job offers. So you're saying a 1099 job $180K may actually have less bring home than a W-2 job at $140K? That stinks since a lot of independent practices seem to be 1099 jobs. From what I've seen most W-2 offers are some larger anesthesia group involving ACT models...

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