Announcement

Collapse
No announcement yet.

1099 vs. W2

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 1099 vs. W2

    Hello all,

    I am currently a 3rd year fellow very soon to be entering the job market. I currently have a job offer from a 2 physician private group. This is a great opportunity for me as I can become a partner in 3 years without a buy in. My question is this. My new employer will allow me to work as a W2 employee or an independent 1099 contractor. I think the 1099 option is the best option for a partner, but I am wondering if I should not work as a W2 employee for the first 3 years. I do know that my compensation will not differ with whichever option I choose. As a W2 employee I will have access to a match within the company's 401k and my health, vision, dental and malpractice insurance will be covered through the practice. I appreciate any help in deciding how to proceed.

  • #2
    WCI has some great blogs on the subject so google and read those first. Helped me a ton.

    It's going to come down to numbers, otherwise both have some pros and cons.

    Initially I wanted to be a W2.. Now I would quit my current job, move and find a 1099 elsewhere if they tried to employ me.

    Comment


    • #3
      Don't forget to consider the extra payroll & medicare taxes that you will be responsible for as 1099 contractor.  See the blogs that SValleyMD mentioned.

      Comment


      • #4
        By saying that your compensation will not differ either way, do you mean that you will be paid enough by 1099 to account for the lost W2 benefits? If your gross income will be the same, having to pay your own malpractice and health insurance if 1099 would sway toward W2 for most folks.

        Your CPA or CFP can be a valuable resource in making this decision. Maybe spending a few hundred $ to save a few thousand?
        Financial planning, investment management and CPA services for medical professionals | 270-247-6087

        Comment


        • #5




          Hello all,

          I am currently a 3rd year fellow very soon to be entering the job market. I currently have a job offer from a 2 physician private group. This is a great opportunity for me as I can become a partner in 3 years without a buy in. My question is this. My new employer will allow me to work as a W2 employee or an independent 1099 contractor. I think the 1099 option is the best option for a partner, but I am wondering if I should not work as a W2 employee for the first 3 years. I do know that my compensation will not differ with whichever option I choose. As a W2 employee I will have access to a match within the company’s 401k and my health, vision, dental and malpractice insurance will be covered through the practice. I appreciate any help in deciding how to proceed.
          Click to expand...


          Do W2 that way your employer would half to pay half of the payroll and medicare tax.

          Comment

          Working...
          X