1099 CRNA Institute: Thrive as your own boss-What’s the difference between 1099 and W2 employment?

Video Transcription
Video Summary
<p>The differences between W-2 and 1099 employment for a Certified Registered Nurse Anesthetist (CRNA) are primarily related to how the CRNA is classified and how taxes are handled. These differences have significant implications for both the CRNA and the employer. Here are the key distinctions between W-2 and 1099 employment:</p>
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<li>Classification:</li>
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<li>W-2 Employment: In W-2 employment, the CRNA is considered an employee of the hiring facility or agency. The employer controls the work schedule, provides the necessary equipment and supplies, and may offer benefits such as health insurance, retirement plans, and paid time off.</li>
<li>1099 Employment: In 1099 employment, the CRNA is classified as an independent contractor. They operate as a self-employed individual and work on a contract basis for various clients or facilities. As an independent contractor, the CRNA has more control over their work schedule and methods but is responsible for their own taxes and benefits.</li>
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<li>Taxes:</li>
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<li>W-2 Employment: The employer withholds income taxes, Social Security taxes, and Medicare taxes from the CRNA's paycheck. The employer is also responsible for paying the employer's portion of Social Security and Medicare taxes.</li>
<li>1099 Employment: As an independent contractor, the CRNA is responsible for paying self-employment taxes, which include both the employer and employee portions of Social Security and Medicare taxes. The CRNA must calculate and pay these taxes on their own when filing their tax return.</li>
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<li>Benefits:</li>
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<li>W-2 Employment: Employers may offer various benefits, such as health insurance, retirement plans, paid vacation, sick leave, and other employee benefits, to CRNAs in W-2 positions.</li>
<li>1099 Employment: CRNAs working as independent contractors generally do not receive benefits from the hiring facilities. They are responsible for securing their own health insurance, retirement plans, and other benefits.</li>
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<li>Control and Independence:</li>
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<li>W-2 Employment: In a W-2 arrangement, the employer typically has more control over the CRNA's work schedule, tasks, and protocols.</li>
<li>1099 Employment: As an independent contractor, the CRNA has more autonomy and control over their work. They negotiate contracts with clients, set their own schedules, and have the freedom to work for multiple facilities simultaneously.</li>
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<p>It is crucial for CRNAs to understand these differences when considering employment options, as they affect tax liability, benefits, and work arrangements. Employers must also properly classify CRNAs to comply with tax and labor laws. If you are a CRNA or considering CRNA employment, it is advisable to consult with a qualified tax professional or legal expert to understand the specific implications of your work arrangement.</p>
Keywords
W-2 employment
1099 employment
CRNA classification
tax implications
employee benefits
CRNA
taxes
benefits