What is the difference between W2 and 1099 Employees
Find out the difference between a W-2 and a 1099 employee, how it can negatively impact your financial situation and how reporting responsibilities vary for nurses
As a nurse, if you’re looking for a flexible schedule and high salary, you’ve probably already found a significant percentage of per-day career opportunities. There are many on-demand nurses, but there are significant differences in the types of employment that accompany daily allowances. The two main job opportunities you are likely to encounter are probably the W2 and 1099 models, but what’s the difference between these two options? Which is the right choice for you?
Let’s review the difference between the two options.
1099 Vs W-2 Employment In Health Care
1099
Financially Liable For
Incidents With Patients
Financially Responsible
For State And Federal Income Taxes
Owe A Large Lump Sum
Taxes And Potential Penalties
Flexible Schedule
W-2
Covered By Company
Liability/Malpractice Insurance
Company Deducts Appropriate
Federal, Social Security And State Taxes
Company Pays A Percentage
Of Your Taxes
Work When You Want, Where You Want
Much higher long-term compensation
HIgh-paying wages can be a trademark of 1099 employers that they use to capture the attention of per-diem nurses working week to week. However, 1099 employers do not cover a percentage of their employees’ taxes, unlike what a W2 employer would do. Therefore, when the time comes, 1099 can see themselves owing money to the government and later paying part of their hard-earned money in form of taxes.
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Therefore, the W2 gigs offer a slightly lower rate, but it not only pays taxes but also provide employee benefits such as overtime, which can lead to more income in the long run.
Prevent possible risk
Most importantly, W2 workers are insured with malpractice insurance by their employers. Therefore, in the event of a problem, the employer, not the nurse, is responsible. Having said that, W2 work may be suitable for employees who want to reduce their risk a little.
Freedom and Flexibility
Traditionally, the 1099 working model has given nurses the opportunity to work whenever and wherever they want. And that is absolutely something most of the employees are looking for as it is very convenient.
W2 Employment Model as Future for Nursing Gigs
More than ever, nurses deserve a new and better way of working. But they also deserve to be protected by the employer. For many nurses, it makes sense to work as a W2 employee. With the fact that the employer will cover benefits such as health insurance, pay for employees’ retirement, pay taxes for them, and even cover malpractice insurance of each employee, this is a great convenience on the part of the worker since everything will be worked on my employers.
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We offer a staffing solution to provide you with nursing professionals with a less risky setup under the W2 employment model. Moreover, we also offer you the freedom to choose whenever or wherever you wish to work, giving you the freedom you need to prevent any further work burnout.