Quote from APN Under Construction
Hi Core0, After reading your post I had to look at the paper again. You couldn't be more right. I looked at the list of benefits and yes; it states "health, dental and visual coverage available, medical malpractice, CMEs worth 1K, productivity bonus an, paid holidays and vacation." All this as an independet contractor. This sounds more like a full time position with benefits on W-2, until I read where it talks about "base salary of $90K - paid monthly as contract employee." This base was negotiated to 95K. I asked for 100K, was offered 95. Haven't agreed to 95K but I said I'll think about it. I don't know whether to be happy or upset. Upset because I would basically be a w-2 employee being made to sign 1099 and be responsible for taxes that come with 1099 (which I don't know by how much more?) Or should I be happy because this is a job that gives me the independence to work out my schedule the way I want (well that's the freedom that comes with independent contractor right?), with the 'added benefit of getting the benefits that I wouldn't otherwise be getting as independent contractor smh?
No one taught us how to negotiate in NP school. All opinions welcome. No opinion is bad or unwelcome. Lets talk about this.
I hope I can help a bit. Getting income on 1099 form is only a good idea if your are yourself is a small business owner or you indeed has a lot of "write offs": qualifying business expenses that you accumulate while performing your work and you can claim as a credit (reduces your tax obligation) when you file your taxes. "Qualifying" is a key here, as I belive you won't have a lot even with all those accounting tricks as IRA contributions, student loans interests, donations - you name it- because, for example, you're not paying anyone a salary, you're not paying for any office equipment and etc., you lovely boss is. It's is a really predatory practice to employ someone on 1099 as IC when in fact that employee technically constitute a w-2 category employee. They are just trying to raise their profits anyway they can.
As for you, think about that, as a 1099 income earner your are responsible for all of your taxes: 15.3% self-employment tax (social security and medicare contribution - your employer share that would have been paid if you were on w-2) PLUS (!) income tax - federal, state and/or local depending on laws where you live- which is roughly additional 8-17% of your income. Simple math: take away on average 25% (or more) of those $95,000 and now you have your "take home" number, which can be surprisingly not a lot. I would consult an accountant, preferrably a CPA, to see which way is more beneficial in your particular situation. Maybe, if flexibility is the priority now, with a small child and custody issues, take the hours, be prepared to earn not as much as hoped to, and keep on a look out for a better opportunity. You said you've recently graduated so I would assume it's just a starting salary and that first NP job that is what it is - first
It's a lengthy post, or well, never was guilty at expressing myself in "just a couple words". I wish you that everything works out for your for the best!