W2 vs. 1099 (TNN)
As a nurse, if you’re looking for a flexible schedule and high salary, you’ve probably already found a significant percentage of per-day career opportunities. There are many on-demand nurses, but there are significant differences in the types of employment that accompany daily allowances. The two main job opportunities you are likely to encounter are probably the W2 and 1099 models, but what’s the difference between these two options? Which is the right choice for you?
Let’s go ahead and know the difference between these two options.
Difference of W2 and 1099 Nursing Gigs
Under Internal Revenue Service (IRS), there are actually two main methods for employment which are the 1099 and the W2 employment models. And to make it easier to understand, the difference between them is the coverage they have. In layman’s terms, W2 are technically employees wherein you will be signing a contract to be committed to the company, increasing employment continuity. On the other hand, 1099 workers are independent contractors, which means that they have a lot of freedom than W2 workers.
There are many reasons why 1099 jobs are attractive, but how hiring W2 can benefit you in the long run for several reasons, most especially to per-diem nurses?
Much higher long-term compensation
HIgh-paying wages can be a trademark of 1099 employers that they use to capture the attention of per-diem nurses working week to week. However, 1099 employers do not cover a percentage of their employees’ taxes, unlike what a W2 employer would do. Therefore, when the time comes, 1099 can see themselves owing money to the government and later paying part of their hard-earned money in form of taxes.
Therefore, the W2 gigs offer a slightly lower rate, but it not only pays taxes but also provide employee benefits such as overtime, which can lead to more income in the long run.
Enjoy better benefits and prevent possible risks
In comparison to 1099 workers, W2 employers consider nurses as employees and provide them benefits such as health insurance, dental insurance, life insurance, and disability insurance. Most often, W2 employers also give a corresponding 401(k) program, which is an employer-provided retirement and investment plan.
Lastly, and probably most importantly, W2 workers are insured with malpractice insurance by their employers. Therefore, in the event of a problem, the employer, not the nurse, is responsible. Having said that, W2 work may be suitable for employees who want to reduce their risk a little.
Freedom and Flexibility
Traditionally, the 1099 working model has given nurses the opportunity to work whenever and wherever they want. And that is absolutely something most of the employees are looking for as it is very convenient. And with the advancement in technology, healthcare agencies such as Total Nurses Network have also made their way to provide freedom and flexibility for W2 workers, which 1099 workers are enjoying now.
W2 Employment Model as Future for Nursing Gigs
More than ever, nurses deserve a new and better way of working. But they also deserve to be protected by the employer. For many nurses, it makes sense to work as a W2 employee. With the fact that the employer will cover benefits such as health insurance, pay for employees’ retirement, pay taxes for them, and even cover malpractice insurance of each employee, this is a great convenience on the part of the worker since everything will be worked on my employers.
Here at Total Nurses Network, we offer a staffing solution to provide you with nursing professionals with a less risky setup under the W2 employment model. Moreover, we also offer you the freedom to choose whenever or wherever you wish to work, giving you the freedom you need to prevent any further work burnout.
Are you ready to change the way you work and shape the future of nursing? Apply now!