I have a few questions about working as a 1099 CRNA.
1. How much does the personal insurance coverage run a year?
2. How much coverage do you need to have?
3. How bad are the taxes?
4. What do you like/dislike about working as a 1099 employee?
May 7, '07
When you work as an independent contractor, you are your own small business. Therefore, every expense you have in connection with work is tax deductible. Just make sure you have a good accountant. You should be able to write off a company car, pension plan, anything you pay for insurance, and much more. On the downside, you will have to pay more into Social Security. (As an employee, you pay only the employee's portion. As a self employed person, you pay more because you are paying both employee and employer contributions (It used to be about 1 1/2 times the normal employee social security amount.)
Increased personal liability is probably the major drawback, but you can limit that by incorporating as a P. A. (Professional Association.)
I'm not a CRNA, nor am I an independent contractor. However, in my "other life" B.N. (before nursing), I worked in employee benefits and pension and profit sharing plans. Some of our clients were doctors and CRNAs. Also many attorneys who were individually incorporated--then the 1-man corporations were partners in the large law firm. All of these arrangements were designed to minimize tax liability as well as personal liability which is greater in a partnership. Remember, get a good accountant.
May 7, '07
As an independent contractor, you are your own small business. Therefore, every expense you have in connection with work is tax deductible. You may be able to have a company car, depreciate it, and deduct cost, any insurance premiums, pension/profit sharing contributions are tax deductible. You will pay more Social Security taxes since you are in effect your own employee and are responsible for the entire SS contribution. There's a special rate for the self employeed which is about 1.5 times the employee contribution. Just be sure to get a good accountant who should be able to help you calculate expenses so you will be able to negotiate a contract rate that will cover expenses and provide a competitive income.
The major drawback is probably increased personal liability. Explore your states rules for professional corporations/associations (P.A. in some states, P.C. in others)which can limit personal liability.
I'm not a CRNA, nor am I self employed. However, In my "other life" BN (before nursing), I work in employee benefits and pension/profit sharing plans. We had clients who were medical doctors and attorneys. Many of the attorneys formed P.A's which were part of large law partnerships.
Remember, you need a good accountant. Hope you get some more specific information from the CRNA's out there.