Working in a healthcare company with benefits is always the best solution when starting your journey into employment. You may hear your fellow applicants talk about requirements like paying taxes or which company has the best benefits when it comes to coverage and care for their employees. There are two types of employment tax forms and what benefits they offer that will be discussed in this post. (Bhatt, 2021)
WHAT IS A 1099?
Being a 1099 independent contractor does give the employee the benefit of establishing more freedom when it comes to additional tax deductions. With this being said there is leverage when it comes to handling your own tax situations and nothing is deducted from the employees wages, however it is the responsibility of the independent contractor to pay their taxes at the end of each year. They may be susceptible to backup withholding if they don't.
WHAT IS A W-2?
When applying to be a W-2 employee on the other hand you as the employee are expected to commit to an organization and are offered a continuity of employment. You as an employee will be covered by the company when it comes benefits like payroll taxes, insurance, overtime, medical leave and more. (Shrm-Scp, 2020)
THE BENEFITS OF BEING A W-2 EMPLOYEE OVER A 1099 IN THE HEALTHCARE INDUSTRY
As a healthcare worker the liability of risk falls into your hands if there is an accident on-site or if the patient is harmed. This means that unless you make quarterly estimated tax payments, you may end up owing a jaw-dropping amount of money every tax season or subject yourself to potential penalties. However, with W-2 employees, you may end up paying less per hour for the same work than an independent contractor. The Employers provide all the necessary tools and supplies for W2 employees.
If being covered and at ease at the end of the year will be your top priority, Reliable Healthcare is here for you. As a nurse-owned staffing agency we understand the troubles employees experience with their taxes and here to provide aid as we are a tax certified W-2 company. Our main objective is to provide our healthcare workers with these benefits as you are our top priority when it comes picking up those shifts and working those hours!
Bhatt, A. R. (2021, May 18). 1099 Employee Benefits | AbstractOps.. Retrieved May 24, 2022, from https://www.abstractops.com/1099-employee-benefits#:%7E:text=Zero%20Tax%20Withholding,for%20the%20services%20you%20provided.
Grigg, B. A. (2021, January 27). 1099 vs. W2 Employee: How Are They Different?. Retrieved May 24, 2022, from https://www.fundera.com/blog/1099-vs-w2-employee
Q. (2021, September 28). 1099 vs. W2: Benefits for Employers and Professionals. Qwick. https://www.qwick.com/blog/benefits-1099-vs-w2/#1099-w2
Shrm-Scp, K. S. H. R. |. (2020, September 29). W-2 Vs 1099 Workers: Understand the Difference Before you Hire. Retrieved May 24, 2022, from https://www.completepayrollsolutions.com/blog/w2-vs-1099#:%7E:text=W%2D2%20employees%20are%20afforded,can%20afford%20on%20their%20own.