200k independent contractor

[Malenurse1235954]

I saw an ad for a job to be an independent contractor earning 150-200k. How much of this actually goes to someone working as an independent contractor? They provide services for billing, referals, and the facility.

[Jules A, MSN]

Excellent question and one that so many NPs are clueless about until they get their whopping tax bill. Google the implications of 1099.

[Malenurse1235954]

Free Self Employment Tax Calculator | QuickBooks

Is this ballpark? 30k+normal family incom tax

[Jules A, MSN]

Nice little tool. I usually guesstimate around 15% for the 1099 tax implications but also consider the lack of health benefits/PTO etc because these are items an independent contractor is not getting from their employer and imo should be added to the bottom line even if you don't need health benefits from this employer. You will be able to write off expenses which, although a pita, can add a few dollars but remember your accountant will also charge you to prepare the additional forms. I don't have a preference with regard to working W2 or 1099 but the numbers need to be adjusted accordingly.

[Malenurse1235954]

Nice little tool. I usually guesstimate around 15% for the 1099 tax implications but also consider the lack of health benefits/PTO etc because these are items an independent contractor is not getting from their employer and imo should be added to the bottom line even if you don't need health benefits from this employer. You will be able to write off expenses which, although a pita, can add a few dollars but remember your accountant will also charge you to prepare the additional forms. I don't have a preference with regard to working W2 or 1099 but the numbers need to be adjusted accordingly.

Also, Malpractice and CMEs? Health insurance might not be that big of a deal if ones spouse receives that as lart of his/her benifit package

[Jules A, MSN]

Also, Malpractice and CMEs? Health insurance might not be that big of a deal if ones spouse receives that as lart of his/her benifit package

I think all that needs to be considered. Just because your spouse has benefits doesn't mean the employer is of the hook for the thousands of dollars another employer would be willing to kick in for health benefits on your behalf. I don't nickle and dime for a petty $1,000 CME etc. I just include it all in my bottom line, give them my rate and if they take it cool, if not I walk.

[Chris Caulfield RN NP-C]

As far as taxes, you will be responsible for an extra 7.5% compared to being an employee. Take the 15% and divide it by 2 (typically employer picks up 7.5%).

As far as lowering your tax rate, there are many ways. Real Estate investment is one of them (which is why a current presidential candidate won't release his taxes to the public.