You’ve seen us talk about independent contractor taxes before—what should you consider if you’re hired under the 1099 classification? From not paying enough when you do your taxes to being surprised by how much is owed, clinicians can be caught off guard when tax season comes around—and this isn’t the only problem independent contractors face.
EVP of Per Diem and Local Workforce Strategies at Medical Solutions and Founder of Matchwell, Rob Crowe, recently touched on the risks of healthcare facilities hiring 1099 contractors rather than W2 employees. Rob’s interests go beyond the legal implications—he firmly believes that classifying clinicians as W2 employees is the most ethical choice.
You (yes, you, dear clinician) deserve all the protections that being a W2 employee has to offer. But what are those protections?
1. Tax Withholding
In addition to having a steady RN salary, the most important thing you should know is that classifying all our clinicians as W2 employees enables us to provide full benefits packages that aren’t available to 1099 contractors. This includes (but isn’t limited to):
- Day-one Health, Dental, and Vision Insurance
- 401K with Company Match
- Travel Expense Reimbursement
- 100% free EAP (Employee Assistance Program) Benefit for All Travelers
- Exclusive Facility Partnerships
We also can’t overemphasize our focus on the mental health of our clinicians—traditional healthcare is important, and we always ensure that clinicians have access to mental health resources too.
2. Labor Laws
We’ve found that when clinicians sign up for platforms that allow them to work as independent 1099 contractors, they don’t always know the right questions to ask to ensure they are both legally and ethically protected. The higher pay that might have enticed you to sign up can turn into a massive tax bill you weren’t expecting, as we just alluded to. It also doesn’t offer you protection under several labor laws.
These laws include workers’ compensation, unemployment insurance, and anti-discrimination laws. Legal protections such as this provide you with a safety net if you’re injured on the job or lose your job due to downsizing, unfair termination, or discriminatory practices.
3. Career Stability
Access to health insurance, retirement plans, paid time off, and other perks improves your overall sense of security and well-being. You won’t be constantly worried about where your next paycheck will come from, how long you’ll have to wait for it, or how big it will be.
“I started Matchwell with the belief that it’s time for healthcare organizations to directly and transparently access clinicians looking for work-life harmony.” – Rob Crowe
Working as a W2 employee, you go into your job knowing what to expect, giving you the stability to plan your life around work and not vice versa.
4. Reduced Administrative Burden
Not everyone wants to be an entrepreneur, and that’s okay! W2 employees don’t have to deal with administrative tasks involved with running their own business, invoicing, tracking expenses, managing business-related paperwork, etc.
As a W2 employee, your employer also contributes to Social Security and Medicare taxes. In contrast, an independent contractor is responsible for the employer and employee portions of these taxes, resulting in a higher tax burden.
This is not an exhaustive list of the protections offered to W2 employees; rather, this is a brief overview to allow you to make an educated decision about your career. If you’re currently a 1099 contractor and ready to gain more control over your income and change the way you work, there is no better time than now to make the leap.
Matchwell, now part of the Medical Solutions healthcare talent ecosystem, is an agency alternative that matches clinicians with top healthcare facilities looking for local and per diem talent. Start a conversation today!