Moore Nurses?

NedRN · Sep 13, 2014

1099 can be a big plus, especially if the agency still supplies a housing stipend off the 1099 tax free. You will be adding a Schedule C to your 1040 tax return and are able to deduct expenses such as travel and per diem first dollar (highly advantageous over itemizing deductions). You have to have receipts for actual housing costs, you won't be able to use the GSA rates. But the agency can so if they give you a housing stipend separately, that is good.

Since your are now having to pay the employer's share of FICA and are not eligible for unemployment and workers comp, the agency is saving about 10% on what would have been the taxable portion of your compensation. Losing those benefits, along with the hassle of filing estimated taxes quarterly is the downside of 1099 status.

You would have to factor that into any comparison of different agency quotes. Personally, I would want to see a close to 20% increase in 1099 pay over W-4 pay to consider 1099 status, or at least $55 an hour. That is just me of course. Try plugging in normal agency offers to PanTravelers calculator. Take that total hourly pay number as a fair comparison to the 1099 pay number and add something for your trouble, I would suggest a minimum of $5 an hour. If the offer is at least that, it may be worth it.

cblauv20 · Sep 15, 2014

1099 can be a big plus, especially if the agency still supplies a housing stipend off the 1099 tax free. You will be adding a Schedule C to your 1040 tax return and are able to deduct expenses such as travel and per diem first dollar (highly advantageous over itemizing deductions). You have to have receipts for actual housing costs, you won't be able to use the GSA rates. But the agency can so if they give you a housing stipend separately, that is good.
Since your are now having to pay the employer's share of FICA and are not eligible for unemployment and workers comp, the agency is saving about 10% on what would have been the taxable portion of your compensation. Losing those benefits, along with the hassle of filing estimated taxes quarterly is the downside of 1099 status.
You would have to factor that into any comparison of different agency quotes. Personally, I would want to see a close to 20% increase in 1099 pay over W-4 pay to consider 1099 status, or at least $55 an hour. That is just me of course. Try plugging in normal agency offers to PanTravelers calculator. Take that total hourly pay number as a fair comparison to the 1099 pay number and add something for your trouble, I would suggest a minimum of $5 an hour. If the offer is at least that, it may be worth it.

I appreciate the reply. They are not offering a housing stipend. Base rate is $55, then time and half after 8 hr. (CA). I am just worried about the 1099 being a pain in the butt.

NedRN · Sep 15, 2014

Well, that is the right range for pay. Do you do your own taxes? A common service if you use a tax professional is doing your estimated quarterly taxes as part of their fee for your 1040. I know TravelTax does that.

Underthemoonicp6 · Sep 17, 2014

Aren't you paying full taxes on that 1099 rate though? I imagine $55/hr then 1.5 after 8 would put you in a pretty high tax bracket? With your rate, you'd be paid $2190/week without any taxes deducted. In that case wouldn't you be looking at a tax rate of around 35% or so? That would bring you to around $1425 per week. To me that's a fine right but would probably be on par with a rate you'd get from a regular agency and without the hassle of doing your own taxes.

I'm no CPA and know nothing really about this I'm just thinking out loud. Generally when something seems too good to be true, it is. I called Moore Nurses because who wouldn't be intrigued by the numbers they post. The gentleman I spoke with told me I could deduct all work related expenses like my car, gas mileage, and apartment. Does anyone know if this is true and also if it makes a significant difference when filing taxes? If you could pull $2190/week and keep your tax burden low, then you're on to something.

NedRN · Sep 17, 2014

Yes, you can deduct all business related deductions first dollar, including mileage, housing, and per diems. The IRS favors businesses over employees so even just a sole proprietor has some big advantages over W-4 status. Very unlikely that more taxes will be paid, much more likely to shield more revenue from taxation.