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$175 per hour as W2 , but how much if 1099

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  • $175 per hour as W2 , but how much if 1099

    Hi folks

    I have an offer to do a PRN job about 6-8 hours per week initially for an expanding business offering PT, MVC insurance assessment and so on.. I am in a position to do PRN at this time as going through transition, not accepted any perm job yet so I am attractive to them as they also just need a PRN doc for now, if they get busier they will need more hours from me ..

    They offered $175 per hour without any benefits as a PRN w2 for now and want to do a contract. I asked them to also look a pay as 1099. So how much should I expect to be paid as a 1099 then if I get 175 as w2 ? any advice re what I should watch in the cotract ? my other job from may will be another PRN clinical job, that pays 120 / hour but 410 k with match and 457b

    Thank you

  • #2
    15-20% more.

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    • #3
      What is your goal for the 1099 over W2? Are you turning down benefits they are offering you as a W2? If there are no additional benefits of W2 1099 is certainly the way to go, specifically with the idea to create a solo 401k, depending on how much you make creating a non prototype solo 401k that allows "Megabackdoor roth conversions" is an ideal strategy to obtain more tax advantaged space.

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      • #4
        Originally posted by saildawg View Post
        What is your goal for the 1099 over W2? Are you turning down benefits they are offering you as a W2? If there are no additional benefits of W2 1099 is certainly the way to go, specifically with the idea to create a solo 401k, depending on how much you make creating a non prototype solo 401k that allows "Megabackdoor roth conversions" is an ideal strategy to obtain more tax advantaged space.
        This is the message I got from the employer as a W-2. For $175. no other benefits and they have not given me any quotes for 1099 which Im not sure if they are interested in. one of the guys who owns the business I know told me the guy who runs the business probably would not pay me anymore as a 1099.

        "finally have some answers. Attached is our current health care through pays uhc, we pay 30 percent of employee cost with is like 96 dollars per month. Currently we are in the orange plan (renewal)"

        I'm thinking based on this I could probably get cheaper HSA health insurance myself with Kaiser for $800 a month which is deductible as a 1099. also even if I get paid the same hourly rate as a 1099 and pay my own and the employer portion of the FICA tax it may be worth it because of the other cost savings with 1099. Like pass thru deduction car travel etc

        Appreciate your thoughts Thanks


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        • #5
          Check on SEHI cost before assuming. Also follow this thread - I just posted a fairly detailed answer that I'm not going to repeat here but it will give you some ideas. Given the lack of benefits, I don't think they're going to offer much more for 1099, but you're not losing much, either, as long as you don't have to provide your own malpractice. A lot to gain from deductions.
          Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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          • #6
            jfoxcpacfp has good advice on that other thread. Not much more to add, if they are not giving any benefits as W2, it seems like a no brainer to ask for 1099, if you are willing to do the work.

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