New Grad Independent Contractor 1099

[vegetofu]

Hello,

 

I'm a new grad and got offered independent contractor 1099 for urgent care/ortho. I'll be doing urgent care and the main dr who's an orthopedic surgeon wants me to also do follow-up on his outpatient ortho pts. He's not sure yet if I'll be at 1 urgent care or go to both. He's not reimbursing my mileage.

No hospital, no rounding, no weekend. M-F 9-6. Rotate taking calls among other him, another dr, and me.

He said they provide training.

 

Offer:

Start $85K, @ 6mo $90K

2 wks paid vacation

NO CME (well he said he'll cover CME that pertains to the practice like ortho/suturing workshops)

Health insurance covered

I didn't ask about 401K, but I assume NO

No reimbursement for credentials

 

Now he said it's better to be independent contractor than employee bc you can write off tax deductions. I don't know much about taxes and independent contractor. But with the independent contractor will I get medicare benefits/ social security? and at the end of the yr my tax bill will be gigantic right since I'm single.

 

Can anyone provide insight about PAs being independent contractors? Thank you for all your advice and for reading this post.

[LT_Oneal_PAC]

I don't know much about PAs as independent contractors, but you shouldn't get any benefits as a 1099. In a 1099, you are your company. You are the CEO, the president, and the low level employee at the same time. You become a business. All benefits come out of your pocket. 85k will end up being more like 65k. On the same note, it's a "eat what you kill situation" usually for other providers and you "pay" him for facilities. So you should make tremendously more than that unless you are pretty slow in seeing patients. But maybe it's different for PAs than what I'm use to. Also, it's best to form an LLC to get all the tax savings which is a huge hassle itself.

 

Maybe others can elaborate, but it sounds like a bad deal to me.

[rev ronin]

I don't know much about PAs as independent contractors, but you shouldn't get any benefits as a 1099.

 

I agree, but you need better advice--you should consult an employment attorney licensed to practice in your state if this is a real offer.

[Piper]

If you are regularly scheduled to be at your job M-F 9-6, then you are, by definition of your regular schedule, an employee and not an independent contractor. I agree the benefits make no sense either as a 1099. Be careful with this setup they are proposing IRS-wise and agree with Rev - consut an employment attorney.

[Piper]

This may help explain the legal difference between employee vs independent contractor at the federal level:

 

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

[Jason09]

This is a really low offer!!! Independent contractor is usually not beneficial financially unless you get really creative and file taxes with some grey area write offs. You have 7-10 % tax increase right off the back when you go from employee to IC that you have to make up before you get ANY benefit. Most people accept IC work with a significant increase in hourly wage to make up for this. If you calculate your hourly rate (9-6=9 hours AT LEAST per day x 50 weeks= 2250 hours total per year) If you take the 90K that comes to $40 an hour if you get out on time every day and don't have to stay late. The fact you get health care paid for is a plus but I think is negated for the fact that you don't get CME. This is a extremely low offer that you will end up regretting if you take this. Don't get screwed. Walk away or re-negotiate.

[Contrarian]

Very wise and intuitive advice above...

 

Jason09 scored a homerun...!!!!

[Boggie911]

Is this a position in NJ? I'm just curious because this was a very familiar scenario for a job I interviewed for as a new grad. If so, I have some information for you, if not I agree with the posts below.