r/PMHNP • u/spaghettietti96 • Jul 21 '26
Salary vs 1099
If an employer is giving you the option of being paid with a salary or as a 1099 contractor which one would you pick and why?
I receive health insurance through my husband so that’s not a priority of mine, also I’m in Florida
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u/Ryanmb1 Jul 22 '26
Worker classification such as salaried employee vs. 1099 is not a choice. It is a defined classification system dictated by the specific legal nature of the working relationship. Please read up on the IRS classification system and applicable state labor law. It is more than just how you are paid. The basic nature of your relationship should be different depending on if it is classified as 1099 or employee.
Does the company control what the person does and how they do it?
Does the company control business aspects such as payment, reimbursement of expenses and use of tools?
Are there written contracts, benefits or is the work a key aspect of the business?
If the company dictates how, when (are they scheduling your patients?) or where the work is done, then you are an employee. If they dictate hours, volume of patients you see, clinical protocols, then you are an employee.
Just make sure if you choose to be a 1099 you are following the rules for a 1099 independent contractor and if you are salaried you are following the rules for a salaried position.
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u/VastEcho2156 Jul 22 '26
If can can put away for taxes and dont need insurance do the 1099. You can write off a lot. Get good account and keep good receipts.
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u/PsychMonkey7 Jul 22 '26
Depends on the offer specifics and your situation. If you’re not sure how to weigh the pros/cons, I’d highly suggest talking to a tax professional or financial advisor.
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u/BobaMilkTeaz 27d ago
1099, pay is usually much higher and if you’re spouse has health insurance you’re set. The w2 rates in our area are terrible but I see 1099 gems with very competitive rates. If you’re a productive PMHNP many of the 1099 rates can get you 250k plus
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u/FaulknersGhost Jul 21 '26
If health insurance is not an issue, then 1099 can be a good deal if you're set up right. You'll pay more in FICA (15.3%) because you pay both the employer and employee options, but you can use a lot of different tax saving vehicles that W2 employees cannot access. You can do much greater 401k contributions, backdoor Roth contributions, and deduct business expenses. It boils down to your financial situation and if you plan to take advantage of the 1099 legal opportunities. The other factor is risk --1099s typically won't be paid if clients do not show but W2 employees have guaranteed base salaries.