PRN Nursing Benefits Questions

Editorial Team / Admin · Aug 5, 2021

Welcome to Allnurses, @dlalton! We have separated your post into its own topic. New topics can be created be clicking the green “Add New Topic” button on a forum page.

FallingInPlace, ADN, BSN, RN · Aug 5, 2021

It very much depends on what the employer is offering as benefits for PRN status. When I was PRN, I had no benefits at all, including 403b. My health insurance was through my husband's job. I left after a year and a bit because they were unwilling to change me to part-time even though I was working a minimum of two days per week.

brandy1017, ASN, RN · Aug 5, 2021

14 minutes ago, dlalton said:

Not sure how to ask my own questions, but it is in regards to benefits / pension....etc My wife works full time but wants to become a PRN. However, we want to make sure she gets proper deductions from a tax perspective. Even more, what do other PRNs do in regards to a 401k/ IRA? What percentage of her salary should she put away so uncle sam doesn't take money and make us owe at the end of the year?

Not an expert on this, but usually if she is PRN for a hospital system they would still take out FICA plus her federal and state taxes. Some systems allow PRN's to use their 403b/401k and may even contribute to it. If she has a pension they may even continue to add to it. She needs to talk to HR and her 401k/403b plan and pension plan if applicable. Many PRN's don't have company health insurance, but she could check into it.

If she is considered an independent contractor like Fedex workers than she has to withhold her and the employers portion of FICA (social security/medicare) plus set aside federal and state tax income periodically throughout the year. I would look into more at the IRS.GOV site or probably some tax software like turbotax would have more info.

If she is still an employee she would have a W2 from her employer vs a 1099. I think she probably would still be an employee, that would be the better choice, in my opinion. Although if she is an independent NP than she may very well be considered an independent contractor. I would suggest checking with a tax accountant if she is truly an independent 1099 contractor.

This article goes into more info on taxes.

https://www.fool.com/the-blueprint/independent-contractor-taxes/

This info form IRS goes into creating a SEP IRA

https://www.irs.gov/retirement-plans/plan-sponsor/simplified-employee-pension-plan-sep

dlalton · Aug 5, 2021

Thanks for the response. To be more specific, My wife is an Orthopedic OR Nurse in an outpatient surgery center. However, she wants to work in a plastic surgery office which is small, does not have full time positions, she would have to be a PRN with no benefits.

I am retired Air Force so my wife gets health and dental through me. But she does not have an option of a 401k as a PRN, can she start a private 401k / retirement IRA? If so, what percentage of her salary does she need to contribute since there will be no Health/Dental/Life Insurance deductions and so we don't owe money to the government for not deducting enough.

Hannahbanana, BSN, MSN · Aug 5, 2021

You can have a retirement account as an independent practitioner (which PRN is)- I have had one for years. What kind to have is a question best addressed to someone with expertise in taxation. Any of the big houses (like Vanguard) will answer these even if you don't have an account with them; your local tax prep provider, like H&R Block, will know too. They were very helpful for me when I was getting started.

JKL33 · Aug 5, 2021

1 hour ago, dlalton said:

I am retired Air Force so my wife gets health and dental through me. But she does not have an option of a 401k as a PRN, can she start a private 401k / retirement IRA? If so, what percentage of her salary does she need to contribute since there will be no Health/Dental/Life Insurance deductions and so we don't owe money to the government for not deducting enough.

You are talking about two separate issues; paying taxes and saving for retirement.

You should talk to a financial advisor; either one in your locality that has a good reputation or a larger firm. Vanguard was mentioned, Fidelity is another, etc. etc. There are options, starting with contributing the yearly max to a Roth IRA if you meet the income requirements, etc. They will help you and it's simple. Open account, start putting money in. You can do different things with it but the basics are not difficult. If your wife happens to have a retirement account with her current employer or previous employers she can have these rolled to whatever investment firm she chooses to do business with. They can advise her about all of that.

Regarding your tax situation this will have to do with your tax bracket, filing status, deductions that you anticipate, etc. Your specific income/tax situation.

Contacting a reputable financial advisor is going to help you get answers to a lot of your questions. You don't need to be independently wealthy to justify contacting them. You win if you have someone help you make a good plan, regardless of your financial situation. Give them a call. ??