Anyone working as an Independent Contractor?

[Tinabeanrn]

Hello. I have been working in this holistic family practice for a year now. I was leaving but my boss gave me an extra day off per week and is increasing my pay significantly!! Yay right! But he said he wants me to be an "Independent Contractor" and for me to now be paid 1099. I will need to turn in my hours weekly to him and my form must say I'm working 1099. I'm not really sure as to why he wants me to do this now as opposed to being a regular employee as I have been since day one. I am excited about the increase, yet scared all at the same time. I Know I will need to contact an account. I'm just wondering if there are any other NP's out there in a similar situation??

[lhflanurseNP, APRN]

As an independent contractor, YOU are responsible for all the taxes, license fees, insurance, etc. Basically you are your own "business" and you are "working" for this physician at an agreed upon fee. Having been involved with independent contractors in other businesses, it is GREAT for the business, but can become a nightmare for the contractor. I would discuss this with a CPA so you understand all that you will be responsible for.

[jer_sd]

I have had several 1099 positions over the years. They have a greater flexibility but quarterly taxes are not fun. Some people claim there are tax benefits to this position but check with your CPA first.

Also there have been a lot of employers treating IC as employees the IRS has very narrow interpretation of the role and can result in significant fines for employers who violate this ruling.

[zmansc, ASN, RN]

Before you think your getting a raise, consult with a tax accountant and get the numbers crunched. You will be paying more in taxes, so your "raise" may end up costing you in the long run. Also you don't mention what benefits you have now, but typically sub-contractors do not get benefits, so you will have to replace any that you currently get and want. This would include not only health insurance but things like malpractice insurance.

Hopefully having those numbers does not dampen your view on your "raise", but typically this is a short-sighted attempt to make it appear as if the employee is making more money while still keeping the costs down for the employer.

[lhflanurseNP, APRN]

Hopefully having those numbers does not dampen your view on your "raise", but typically this is a short-sighted attempt to make it appear as if the employee is making more money while still keeping the costs down for the employer...well said zmansc! The grass is always greener until you get there

[Tinabeanrn]

Thank you guys all for replying. It means a lot. It does actually end up being a raise because I had no benefits before so I had nothing to lose. He was supposed to Give me 2K in CME's but never gave it to me. I had to get my own Medical benefits at the beginning anyway. So I think the only thing that I will lose is the whopping two weeks of vacation I got. Which only added up to 4k a year. So it does actually equal a raise. But your right. I think he will benefit the most in the long run.