Flexibility is one of the biggest draws to being a nurse contractor. As a 1099 employee, you can set your own schedule, choose your own assignments, and work where and when you want – whether it’s in a hospital, long-term care facility, medical office, school, or other setting.
Being a nurse contractor also entitles you to numerous tax benefits, including the ability to deduct various business-related expenses from your taxable income, thus lowering your overall payments. For example, these could include office supplies, student loan interest, charitable donations and travel costs. Now that tax season is upon us, it’s especially important to understand these benefits.
1099 Vs. W-2: What’s the Difference?
A W-2 employee is one who is formally employed by a company or organization. As 1099 employees, nurse contractors, by contrast, hire their services out to whomever they work for. In addition to greater flexibility over their assignments and work hours, they often have the potential for higher earnings through multiple clients – in addition to those deductions from taxable income.
• In essence, 1099 employees are responsible for paying their own taxes, so they do need to keep accurate records and make timely payments. They use 1099, versus W-2 forms, for this purpose. The tradeoff for self-managing taxes, though, includes diverse work experiences and career opportunities, as well as being empowered to make key decisions about your work life – as you’re not subject to the same level of management and oversight as W-2 employees.
Know the Right Strategies for You
As long as you understand the tax benefits and strategies involved in being a 1099 employee, working as a nurse contractor can be just the career path you’re looking for – especially if you’re balancing professional advancement with family, education, or other personal goals and commitments.
The skills and experience of nurse contractors are in high demand in virtually every clinical specialty. If you think this may be the right career move for you, look for your next job at PRN Consultants. Founded by nurses for nurses, we have a 45-year track record of matching nurses with top healthcare providers throughout Delaware, New Jersey and Pennsylvania.
