Contractor (Nurse)??

Nurses General Nursing

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Have anyone out there used to be a nurse contractor before or heard anything about being a nurse contractor?

I went to a baby shower party last weekend and met this nurse who used to be a nurse contractor with a nursing agency. From what I gathered, she is more like a sub-contractor, where she got the assignment from the agency - and after completion of the assignment, the agency will pay for her service.

It sounds pretty interesting especially you don't get ding for tax upon completion of your service. You take all home.

I am no tax person but doesn't it sound a bit wrong for not paying tax especially in Canada? Don't you need to report your earning? I guess not if you have a super good accountant???

I didn't want to offend her or ask more even though I want to. :cautious:

Just wonder if anyone out there heard about this kind of business?

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Specializes in Critical Care, Education.

OMG. You'll get a 1099 at the end of the year - it's a statement of your tax-free earnings & it's also sent to the IRS so that they know exactly how much you have earned. Employers who don't do this are subject to significant penalties and can actually be prosecuted for fraud.

If you don't pony up with the appropriate taxes within the right time frame, you'll get a (not so nice) little note from the IRS telling you exactly how much taxes & penalties you owe. As a contractor, you would be considered 'self employed' which means you should have been submitting quarterly taxes to the IRS, so that's where the penalties and interest come from. Oh - and you'll also have to cover all the other 'benefit contributions' such as your SS contributions as well as health insurance (which is mandatory now) Bottom line? Don't even attempt to do this unless you have an accountant who set up all the details for you.

If it sounds too good to be true - - it always is.

ETA - the above is based on my own personal experience, unfortunately.

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Specializes in Med/Surg, Ortho, ASC.
OMG. You'll get a 1099 at the end of the year - it's a statement of your tax-free earnings & it's also sent to the IRS so that they know exactly how much you have earned. Employers who don't do this are subject to significant penalties and can actually be prosecuted for fraud.

If you don't pony up with the appropriate taxes within the right time frame, you'll get a (not so nice) little note from the IRS telling you exactly how much taxes & penalties you owe. As a contractor, you would be considered 'self employed' which means you should have been submitting quarterly taxes to the IRS, so that's where the penalties and interest come from. Oh - and you'll also have to cover all the other 'benefit contributions' such as your SS contributions as well as health insurance (which is mandatory now) Bottom line? Don't even attempt to do this unless you have an accountant who set up all the details for you.

If it sounds too good to be true - - it always is.

ETA - the above is based on my own personal experience, unfortunately.

Isn't OP in Canada?

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What is OP?

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Specializes in OR.

Depends. Some agencies take taxes out before they pay you.

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What is OP?

Original post, or in that comment, it means "original poster." In other words, the person who started the thread.

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