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Part time Independent Contractor Offer

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  • Part time Independent Contractor Offer

    Hi all,
    My primary job is as a W2 employee (3 weeks per month).

    However I'll be doing about 1 week per month as an Independent Contractor (Palliative/Hospice). The hourly rate is about $106/hr plus small work incentives above a wRVU threshold. I've calculated W2 employee rates for similar positions, and it comes to about $105/hr (plus retirement contribution, health/dental, CME, paid time off, yearly raises, etc.).

    -How much should I estimate the benefits add to the salaried employee?
    -How should I go about this negotiation?
    -If this gig were accounting for just 1/4th of my total earnings, would you recommend forming an LLC?
    -What other business-related actions would you recommend?
    Thank you!

  • #2
    It's common to see 15-20% upcharge for 1099 (independent contractor) over W2 rates.

    Tell them: "I've researched comparative employer-employee pay rates & based on that, I'd like $105 as a W2 or $130 as a 1099".

    LLC? No.

    Assess if you have lots of 1099 deductions you would gain as deductions on your taxes.

    Assess if you could now begin your own individual 401k or other self retirement accounts.
    "Oh look another bajillion point declin-Ooooh!!! A coupon for pizza!!!!" <--- This is what everyone's IPS should be. ✓✓✓