Nursing jobs offered as 1099 independent contractor positions are more and more common in Duluth, GA, and surrounding areas. This tax status has pros and cons, but for the nurses themselves, the bad seems to outweigh the good.
Let’s take a closer look at the pros and cons of working as a 1099 contract nurse.
The Pros
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- Freedom – The major selling point of most 1099 gigs is the freedom they provide. You’re not employed in the traditional sense, so you may be able to select your own clients, set your own hours, and charge your own rate.
- Tax Deductions – As an independent contractor, you’re viewed as your own business by the IRS. This means you can take advantage of tax deductions designed for small businesses and write off business-related expenses.
- Work-Life Balance – Since you pick when and where you want to work, you have full control over your work-life balance. This can lead to less stress and greater satisfaction both at work and outside of it.
- Earning Power – Most contract nurses are paid at an hourly rate. Meanwhile, you negotiate your rate before you start working as a 1099 contractor. This means you can enjoy unlimited earning potential in a contract role.
- Benefits – There is a misconception that 1099 contractors are not given benefits. Yet, there are healthcare organizations that give 1099 contractors access to benefits and other perks provided to their full-time employees. If you search for the right 1099 contractor role, you can land life insurance, paid vacation, and other perks.
- Career Advancement – If you are unsure about where you want to work as a nurse long-term, a 1099 contractor role may be ideal. This is due to the fact that a contractor is only employed for a set period of time. Thus, if you’re happy in a contract nursing job and your employer is satisfied with your work, you may be able to stay with the organization for an extended period of time. Comparatively, if either you or your employer decide to move on after a contract, there is no harm in doing so.
- Experience – Regardless of how a 1099 contractor job turns out, it gives you a chance to add to your resume. Therefore, you can bolster your nursing skill set and experience in a contractor role. And this may ultimately help you land your dream job down the line.
The Cons
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- You’ll Pay More in Taxes – On the whole, you’ll end up with a much larger tax burden when you work as a 1099 independent contractor. Since an employer isn’t paying their share of FICA taxes (Social Security and Medicaid), you’re on the hook for those payments. Plus, you’ll have to pay your income tax in one large chunk when tax season arrives, or split it into installments in the form of estimated payments throughout the year — that can prove to be a heavy burden.
- No Benefits – You’re not employed in the traditional sense, so you won’t necessarily have the advantage of employer-provided benefits like health insurance and a retirement plan.
- No Stability – You’re contracted to do a job — once it’s over, you’re out of work. Plus, companies employing 1099 workers can terminate those contracts at any time, often for any reason, they see fit.
- No PTO – 1099 independent contractors typically aren’t eligible for paid time off the way employed nurses are. You won’t have the advantage of sick days or vacation days, and overtime pay will be nonexistent.
- Liability Risk – Because you’re self-employed as a 1099 contractor, the liability risk falls on you if there is an accident on-site or if a patient is harmed. Your own risk is also increased; if you’re hurt on the job, you don’t have a workers’ compensation program to cover you.
- Short-Term Employment – Contract nurses are usually given contracts that range anywhere from three to 12 months, with no guarantee of renewal.
- Loyalty Concerns – As a contract nurse, a healthcare organization is under no obligation to be loyal to you. If the organization decides it does not want you on its team long-term, it can dismiss you.
Clearly, nurses in and around Duluth, GA have more to worry about when they’re employed as 1099 independent contractors. Luckily, BOS Medical is here to help. We place all our nurses in W2 positions — that means they will save in the tax department and enjoy all of the associated benefits of stable employment!
Should You Pursue a 1099 Independent Contractor Role?
Weighing the pros and cons of independent contract work is a must. This allows you to determine if a contract role aligns with your short- and long-term career aspirations.
Oftentimes, a contract role represents a viable short-term solution. The role allows someone who is entering the nursing field to gain hands-on experience with a healthcare organization. Or, the role gives experienced nurses the flexibility to work where and when they want and maintain complete control over their earning power.
Comparatively, a contract role is generally a poor choice for nurses who value stability. In this role, you nurse earn money while you search for a permanent job. Conversely, you are only guaranteed a job for a certain amount of time. As such, you may feel concerned about where you’ll be working long term.
If you’re considering contract or permanent work in nursing, it helps to partner with a medical staffing agency like BOS Medical. We can help you explore nursing jobs that align with your expectations. That way, you can build and sustain a successful nursing career.
Ready to Start a New Career?
If you’re ready to find your dream nursing job in the Duluth, GA area, give BOS Medical a call today. We’re here to help you get started with the career you deserve.
