1099 Contract for a new grad

Jo Dirt · Jun 4, 2006

Well, I'm no CRNA but having been labled an "independent contractor" myself at one time I say stay away from this scene.

Supposedly, CRNA's are in such high demand and have the option of having the best benefits of any health care worker in the system why would a person settle for this?

athomas91 · Jun 4, 2006

by the time you take a few wks of vacations each year and pay for benefits ... you will likely be making the same or less than a regular position.

jwk · Jun 4, 2006

by the time you take a few wks of vacations each year and pay for benefits ... you will likely be making the same or less than a regular position.

Agreed. Sit down and work out the costs of all your benefits.

$98 per hour, 40 hours per week, less four weeks of vacation, and at least five holidays where you're not going to be working, and you're just under $185k per year. Drop another $5-6k for your share of FICA/Medicare that an employer would have paid. You're already under $180k. You have to pay your own malpractice, health insurance, disability insurance, CME and licensing expenses, other miscellaneous expenses and "benefit" costs, and then don't forget your self-funded retirement plan.

I think there are better jobs/positions/arrangements to be had.

yoga crna · Jun 5, 2006

That is a terrible contract for providing anesthesia services.

It is important that you learn how to negotiate. The first thing to do--go to gaswork.com and look up all of the CRNA postions available. I don't think you will find any for compensation that low. Take that information with you in the negotiation session.

There is nothing wrong with being an independent contractor, but then, by definition, you have the right to control your practice. Also, you need to budget for taxes, FICA, malpractice insurance, health insurance, pension plan, automobile expenses, professional dues, continuing education, etc. Your fees need to be high enough to pay for all of those and, of course a salary to yourself.

Did you not have any business classes in school? This should be an important part of your curriculum.

yoga

Tranman · Jun 5, 2006

Wow! 1st I can't say I share the opinions of others here. $98/hr on a 1099 for a GRNA with no call is a Great Postion! Basically $98/hr = $200+/yr.

You can take away $20K for vacation (5 wks at $4K/wk). About $30 K for good Benefits.

What about OT? OT of 5 hrs a week x 47 wks (- 5 for vacation) = $24K.

10hr/wk = $50K.

So if you did about $50/wk. Benefits and Vacation is paid for. Malpractice and disability is relatively cheap. You're still around $200K. WHO THINKS THIS IS NOT GOOD? Yes, go check out gasworks.com Many jobs on there are not comparable. Worse I would say. If you guys are making 200K doing something else, why bother going through CRNA school?

There are also tax benefits for going with a 1099 over a W-2. Talk to your CPA bout this one. Personally, I prefer to work on a 1099.

Tranman · Jun 5, 2006

Sorry meant to say 50hrs/wk not $50/wk. also the site is www.gaswork.com not gasworks.com

sorry edit fxn is not working properly or I don't know how to properly use it. I keep getting the invalid link message.

Phishininau · Jun 5, 2006

My deal is 150K including call and OT (estimated). Call is once per month (either first or second call...it rotates.) All medical, dental, life, disability, malpractice, certifications, retirement, and 2% christmas bonus added to the top for a package of 173K. Also, additional OT and call can be worked whenever wanted at a base of 70/hr.

Lucy54 · Jun 5, 2006

Hey Phishininau, your PM inbox is full. Is that at a hospital in Alabama?

Businessman · Jun 6, 2006

As one who has a business degree, I can tell you that things are not that clear cut.

1099 positions are for people who better know how to maximize the tax deductions, without raising flags with the IRS.

After talking to a CPA who does tax returns for small business owners, you have to take into consideration the cost of living in your area.

Also, how much is worth to you the lack of call. Proximity to family/friends is another issue. Do you like the group that offered this position? All these intangibles matter.

For me, money is not the only deciding factor.

If all you care is net income at the end of the year, talk first with a CPA, and you'll have a number.

jwk · Jun 6, 2006

Wow! 1st I can't say I share the opinions of others here. $98/hr on a 1099 for a GRNA with no call is a Great Postion! Basically $98/hr = $200+/yr.
You can take away $20K for vacation (5 wks at $4K/wk). About $30 K for good Benefits.
What about OT? OT of 5 hrs a week x 47 wks (- 5 for vacation) = $24K.
10hr/wk = $50K.
So if you did about $50/wk. Benefits and Vacation is paid for. Malpractice and disability is relatively cheap. You're still around $200K. WHO THINKS THIS IS NOT GOOD? Yes, go check out gasworks.com Many jobs on there are not comparable. Worse I would say. If you guys are making 200K doing something else, why bother going through CRNA school?
There are also tax benefits for going with a 1099 over a W-2. Talk to your CPA bout this one. Personally, I prefer to work on a 1099.

Tran - you're doing exactly what opponents of the "Fair Tax" do. They change the terms of the proposal, and then argue against it.

The OP's post clearly states "no scheduled call", yet you make the assumption that they can get $50k in OT by taking call. You can't make that assumption to further your argument. And if you'll read carefully, the rate for a GRNA is only $88/hr. The $98/hr rate is only after getting certification.

So - we're back down at $150k or less, and I'll stand by my (and others) claim that there are much better opportunities than this one.

Tranman · Jun 6, 2006

what in the world are you talking about? I never changed the terms of the proposal? I said," $98/hr on a 1099 for a GRNA with no call is a Great Postion! Basically $98/hr = $200+/yr."

I know this position is for no call. I'm NOT counting call as OT. Many times there is opportunity to work OT above a regular "8" hour shift. Many times, you can pick up an extra shift on a saturday that is considered OT. But these details need to be worked out before signing the contract.

My 1st and 2nd job were both on a 1099. My 1st job's base was $176K on a 1099 with light call. With some OT it was above 200K by the end of the year. I didn't take vacation b/c b/t post call days off and early outs, occ 3-4 day weekends, and holidays, I didn't feel the need for vacation. I considered my first job a great one.

2nd job was similar 200K on a 1099 w/ 6wks paid vacation, and no call. I averaged 55hrs a wk and made $250K. That was a great job as well.

And you're 2nd argument about $88 vs $98 is insane. How long do you expect to work as a GRNA? 1-2 months while you wait for results of your certification exam. After that, you'll be making $98 for the MAJORITY of the year. And if you didn't pass, I doubt you'd be sticking around?

Are you a CRNA? What are the specifics of your experience. Can you offer any better an argument for W-2 over a 1099 other than this drivel.

Keep in mind that 200K on a 1099 with NO call is a still a great position for a NEW GRAD. I'm not saying this is the best out there. I'm saying this is a great paying job for a new grad.

Someone advised on negotiating? What are you negotiating with? This person is a NEW GRAD! There's probably 3-4 others looking at the same position. You don't have a lick of experience to negotiate with. Sh!t, even at a $150K that's great for a NEW GRAD. I don't know quite honestly where any of you are coming from. When I got out of school 4 yrs ago, I thought $100K was making the big Bucks. Everyone's perspective has changed. I'm all for making more money, but let's not lose sight of reality ok?

I bet YOU CAN't find on gaswork a better job right now than this for a new grad. If you do, send me the link and I will send you a $50 gift certificate for a steak dinner on me. I've scoured gaswork for jobs so I know what I'm talking about. And I'm not talking about the jobs that promise $300K for north of mexico either. Many factors to consider when it comes to a good job: The group, the work load, types of cases (OB,PEDS), whether there is an 8hr guarantee, call vs no call, state/town/city you'll be living in, weather, cost of living in that state, etc.

Do me a favor. Actually goto gaswork, put in any state and look at the pay offer. The majority is around 110K on a W-2 with benefits and Call.

So if all things being equal and there does exist opportunity to make OT here (and I'm not talking about taking call), this is one heck of a job for a new grad. Again, there are tax benefits from a 1099 that can easily put an extra 20K in your pocket over a w-2. :trout:

OK sorry, I don't mean to sound like a jerk, but I'm not sure that you truely understand the CRNA market.