Employee versus independant contractor

[kellyshel]

Hi everyone. I am graduating in 1 month with my MSN-FNP and have started searching for my future job. I have plans to work for a surgeon in the office and as a surgical assistant. My question is it better to work as an employee of the practice or as an independent contractor as part of an LLC? The physician that I am leaning towards asked me my preference and I really don't know the benefits or cons of each way. Thanks in advance!

[akulahawkRN, ADN, RN, EMT-P]

While I cannot speak for the NP part of this, one of the considerations is that as an employee, your "employer" pays certain taxes that you do not see on a paystub or your W2, and is not part of your tax returns because that's a cost of business. As an independent contractor, YOU are responsible for ALL taxes as an employer and employee. Your hourly wage may or may not be higher after taking these taxes into consideration. As an independent contractor, you are also responsible for your own "fringe" benefits. As an employee, you may or may not be offered various benefits. This is not a decision to be entered into lightly, choose well! That being said, if you're incorporated as a business, your personal assets will likely have some protections you would otherwise NOT have if you do not incorporate and be an independent contractor.

I would suggest (highly) consulting an employment lawyer and a good tax attorney or CPA to help you determine true pros and cons of this. Money well spent, IMHO.

[kellyshel]

Thank you so much for responding. I am researching all my options, and did not take into account the hidden taxes. I am so excited to start my new career, but the business side of this is a bit daunting.

[lhflanurseNP, APRN]

You will also be responsible for all your license and insurance fees as well as education. These can add up quite quickly.