1099 vs w2

lhflanurseNP, APRN · Jul 2, 2017

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.

Gassadist · Jul 2, 2017

Sorry I could not understand. That's why I asked as an example in my question

rnmaybe · Jul 3, 2017

I would say 20% would be more like it so that would be equivalent to about $240k as 1099 employee

offlabel · Jul 3, 2017

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.

BigPappaCRNA · Jul 11, 2017

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.

Bluebolt · Jul 11, 2017

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...

ICUCCRNPA · Mar 29, 2018

Does anyone work both W2 and 1099?

allnurses Guide · Apr 7, 2018

Does anyone work both W2 and 1099?

Yes. It's not that unusual. The W2 is normally the full time job and the 1099 is the per diem/locums/part-time job.

Bluebolt · Dec 16, 2018

So those of you with more real-world experience with this would you say that with a job offer of $250,000 1099 would be equivalent to a W-2 offer of $220,000? As a single male I would just have to cover myself for basic health insurance, malpractice, pay the employers half of taxes, cover my own CME, and while I would get 6 weeks vacation it wouldn't be paid.

It's been so long since I've worked and earned a paycheck is it usually about 30% of your salary that you can write off towards FICA/Medicare/state tax as a W-2?

So then would I expect closer to 50% of my income to go somewhere else if I'm 1099? Although, I hear there are tax advantages (how so?) so that perhaps when I file taxes I get a portion of my paycheck back?

Can you tell it's job interview season and I'm crunching numbers...

DreameRN, BSN · Dec 19, 2018

Oh the envy i have for the time you are in to have interviews! congrats! I've got 2.5 years left...6 months down.

Just following this though because i'm just as interested and 1099 vs w2 is new to me as well.

My paychecks as a nurse I generally saw 30-35% taken out--all things rolled into that.

I think the tax advantages also have something to do with the money you can put into retirement, and thus get in a lower tax bracket?