Hello,

Stumbled on this site, it seems newer, so that is probably why the lack of response. I’ll try to give a brief explanation of the difference between these 2, as a current CRNA who started as a 1099 and am now working at a facility where I am a W-2.

For the sake of simplicity, with a 1099 you are basically acting as an independent contractor, where as with a W-2 you are acting as an employee. So, if you’re an employee, that means that taxes have to be taken out of your wages, and you will file a W-2 come tax time. As an independent contractor (1099), you get full pay with no deductions held, so you are liable for your own taxes. This means when you file taxes, you will file a 1099 form.

With a 1099 (for the most part and in my experience) you will recive more money upfront, because nothing is withheld, but you’ll actually owe higher taxes in the end, in comparison with a W-2. This is because with a 1099 you will not only owe income tax, but also self-employment tax (because you are considered an independent contractor), which at the time of me writing this, is 15.3% on the first $113,700 of income, and beyond that amount, the rate drops to 2.9%. As an employee (W-2), you will only have to pay one-half of the Social Security tax (7.65%) on wages up to $113,700, and one-half the Medicare rate (1.45%) on all wages (your employer pays the other half).

Aside from the tax stuff, employees (W-2) are also protected by all of the nondiscrimination, wage, and hour protection laws that apply to employees but not to independent contractors. Also as an employee (W-2) you may have access to pension and benefits. The incentives are there for companies to use independent contractors (1099) over employees (W-2), which is why many private groups opt to use independent contractors (1099).

The main thing is to do the math, and speak with your finical advisor to make sure you are not coming up with the short end of the stick, if you choose to go the 1099 route. You have to figure in the taxes, benefit options, malpractice insurance options, etc. when going with a 1099 job. Sometimes the pay seems higher for a 1099, but you have to figure the above factors into the equation to make certain that after tax time, etc. that your take home pay is on point with what you expect.

Now, I know there are some very pro 1099 CRNAs out there, because there are ways to benifit from this status (or so I’ve been told), however, for me personally, my skill set does not extend too far into the tax law/financial realm, thus I find it much easier and am much happier as a W-2.

This is a nice site, hope more CRNAs get involved in the conversation.