1099 to W2

[Blalvara12]

Hey all!

I am currently located in the NE working as a 1099 IC in ER making $80/hour and work between 130-150 hours per month (125K-145K per year roughly). Second shift only, see between 20-25 pt/day.  I was presented with an opportunity to work in bariatric surgery. First shift, no call/weekends, 2 clinic days and first assist OR 1-2 days a week. Surgeon seems willing to teach laparoscopy and possibly da vinci xi in the future, but I won't get much autonomy, except nutrition pre-op visits and follow ups. 401k matches 5%, $2500 CME/year, accrual PTO (which seems to translate into 2-3weeks/year). Offer came in at $110k. I am only a year out of school, and was always interested in surgery throughout school, but I love the ER as well and actually like my job enough to stay on as per diem if I were to transition. Just looking for insight into salary compensation between W2 and 1099. Any thoughts on either job are also welcome! Thank you in advance.

Edited August 13, 2019 by Blalvara12

[AbeTheBabe]

To answer this question we will need to know the specifics of the benefits of the second position and how many hours you will be working. Seems like you're working 3-4 days a week? How many hours? Is this a full time gig?

The ER 1099 job, you pay an extra 7.5% in employment tax on so really your hourly is 74/hour. This is the number you need to compare to the salaried W2 position. Let's assume you are working 40 hours a week for 52 weeks (just to compare apples to apples) and this brings your total to 154K. I'm assuming both positions pay malpractice insurance.

The second job has benefits which for the sake of simplicity I will calculate at 110K salary working 40hours/week. 5% matching is worth 5,500 a year. PTO of 2 weeks is worth 4,231 and 3 weeks is worth 6,346. Plus the CME which is 2.5K. Do you get time off for CME as well? The other big thing you didn't mention is health insurance which can easily save you 5-20K a year depending on what you pay now, if you have dependents, what your employer pays, etc. We add this all up and the total compensation is around 125K on the LOW end. Then there's dental/vision insurance they may pay for. Life insurance. Disability insurance. Any licenses/fees/orgs the ER position may not cover. These things quickly add up.

If you get more info about hours/benefits/etc we can make a better comparison.

[Boatswain2PA]

Abe's description is fantastic!

Few other things to add

1: business deductions for 1099, like computer, phone & service, travel, meals, CME, etc.

2.  Difference of retirement plans.  Can save $53k/year PRERAX in a Sep-IRA, also higher limits (I think) on individual 401K, etc.

3. Risk of IRS audit higher with 1099, including risk they declare you NOT a 1099 contractor at all but rather a regularly scheduled w2.

4. Add in work comp to Abes list of healthcare/dental/vision/disability/life.

5. Money isnt everything....nights and weekends grind you down as you get older, are damaging to relationships, and generally suck.

[Cideous]

When I was an IC it was a pain in the ass to get healthcare as well.  I tried everything once I did purchase it, to find a way to get it pre-tax like an employed W2 position.  I was never able to quite get it figured out.

[GetMeOuttaThisMess]

When I was an IC it was a pain in the ass to get healthcare as well.  I tried everything once I did purchase it, to find a way to get it pre-tax like an employed W2 position.  I was never able to quite get it figured out.

The write-off was under the itemized deductions. Don’t remember the specific from since we’re talking early aughts.


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