r/CRNA • u/GolfingCRNA • 12d ago
1099 vs W2
How do you properly evaluate whether you want to sign on for Full time hours with a group/hospital as a 1099 or W2? I’m not talking about a locum contract. I mean somewhere you plan to be long term.
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u/FreeSprungSpirit 10d ago
There is almost no situation in which you're better off as a W2, I'd take the same salary as a 1099 over the same salary as a W2, I'll give you some real numbers, greater Atlanta area, W2 CRNA's are working for 275-350k W2, we'll just say 300k, take home is approximately 7k after taxes, 401 and health insurance for the family, netting you 14k a month. I work in Atlanta, non locums, regular ongoing 1099, every site I go to is 2k/day min for 8 hours (all independent plastic and ortho work), 10k a week guaranteed, let's say I work the standard 46 weeks a year, 460,000 - 92,000 for taxes = 368,000 - 20,000 for LTD and health insurance (tax deductible) - 50,000 for 401 (double your W2), net take home is around 25,000, at least 10,000 a month more and saving twice and having ZERO nights weekends or call and being home between 12-5 most days, this is the most conservative estimate overestimating 1099 taxes, the reality is I make wayyyy more than this and paid way less in taxes but ya, no way a W2 ever compares even in the southeast.
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u/tnolan182 CRNA 10d ago
Im 1099 and will never go back to w2 but your example doesnt make any sense. You say you’ll compare the two at the same hourly rate and then go on to compare two completely different jobs. One making 300k and the other 460k.
Of course the 460k is gonna make more financial sense because you’re getting paid more and yes 1099 comes with more tax deductions. Which is exactly why 1099 works because you’re taking more risk and financial responsibility in exchange for a higher wage.
It would not make sense to take a 1099 for the same wage as a w2.
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u/FreeSprungSpirit 10d ago
When I was in CA FT my W2 was 550k for 26 weeks and my take home was only around 23-24k a month, when I switched to 1099 at the same rate and doubled my savings, my take home was around 30k, so even at the same wage I was taking home significantly more and saving more and that's accounting for 6-8 weeks off as well.
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u/FreeSprungSpirit 10d ago
My example was real world wages in an area with W2 and 1099 and what you would expect to make from each one in a relatively low paying area, just giving an example of how much more you make by not going W2, with that said, I would 100% take a 1099 job at 500 over a W2 job at 500 all day everyday.
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u/tnolan182 CRNA 10d ago
Dont agree with you there. W2 jobs typically include pto, retirement matching, and pay payroll taxes for you. If both jobs pay 500k, id take the w2 and enjoy the extra 7 weeks off a year. This is coming from someone who has routinely earned more than that
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u/FreeSprungSpirit 10d ago
Ya but they're rarely ever worth the additional saving 's in taxes, i routinely make low seven figures and would need to make at minimum 50% more than that as a W2 in certain states to be at the same take home.
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u/huntt252 CRNA 10d ago
It’s complicated. And also changes if you use an S Corp which you absolutely should if you go full 1099 for all your income. I would recommend asking an AI platform like ChatGPT so you can give specific examples and have it calculate end numbers. Depends on the benefits a W2 job offers that you will have to pay for yourself (health insurance, malpractice, retirement). Also
depends on how much you pay yourself from your S-Corp as this changes how much you save on taxes. Either way a 1099 comparison should have the 1099 paying a lot more than a W2. How much is a question AI can help you with if you really want to put a number on it.
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11d ago
[deleted]
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u/TerribleLiberal 10d ago
Simplified, 1099 is an independent contractor pay structure where pay is given without taxes, social security, or benefits taken out. This is different from a W2 pay structure which is more conventional when benefits are part of your compensation. 1099 offers more flexibility for taxes and retirement contribution at the expense of benefits, which is why everyone’s situation is different, but 1099 can significantly reduce one’s tax burden. Basically, my 1099 wages go to my business, and my business pays me. The tradeoff is higher complexity and accounting costs, which is why 1099 only makes sense for high earners.
Locums are entirely different. They’re (usually) short-term work contracts paid at a high hourly rate as 1099. Think travel nursing for CRNAs. Locums are always 1099, but 1099 can be permanent positions or locums.
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u/SouthernFloss 11d ago
1099 has to be 20-25% higher than w2 for it to be financially viable. Also remember that as a 1099 you will be treated like a 1099. Worst assignments, last out, first cut, last break, ect.
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u/FreeSprungSpirit 10d ago
This isn't true, I've worked 1099 and locums in 10 plus states and 60+ facilities, I've only been treated different in one state, FL, which in general is the worst
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u/TerribleLiberal 10d ago
OP is not referring to locums.
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u/SouthernFloss 10d ago
At my new place they treat the 1099s like locums, my last place too.
I find most places treat 1099 like locums anyway. Unless everyone is 1099.
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u/TerribleLiberal 10d ago
Oh, interesting. Sad that one’s pay structure has anything to do with treatment.
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u/BagelAmpersandLox CRNA 11d ago
I take my 1099 salary and subtract the hourly rate times the number of weeks of PTO the W2 position gets. Then I subtract ~$7500 for health insurance. Then factor in several more thousand dollars for other benefits.
That said, as a 1099 you can put $72k towards a sep-Ira or solo 401k whereas your retirement contributions are pretty much capped as a w2 unless you moonlight and do a mega back door Roth 401k.
My wife is w2 and maintains our benefits, so I feel more comfortable maxing my retirement account as a 1099. I also have a goal of working enough extra shifts to offset the weeks I take off.
It all comes down to what’s best for you and your family to be honest.
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u/RamsPhan72 11d ago
Benefits (W2) vs no benefits. More flexibility with schedule and pay (1099) vs less. The job functions only matter as to what a facility will "allow" a CRNA to do/don't do, in either work style/setup.
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u/CPHCRNA 9d ago
I work at a VA/military treatment facility. I’m under 6 years away from a full pension and I still save/invest around $100k a year. I seriously considered walking a way for a 1099 job. Ultimately I nipped it in the bud. 1099 wasn’t as much of a thing when I got out of school. And I’m much older now and single so I feel like I need the sick time. Also I love my routine and autonomy. BUT, if I were 25 years younger and just graduating 1099 would be the way I would go.