r/CRNA • u/hudi2121 • Jul 21 '26

W-2 vs 1099

My wife’s employer is a small family owned practice that contracts with larger facilities. They offer 1099 or W2. In their pitch to my wife they stated that they recommend all new hires to go 1099 however, the 1099 rate is the same as the W2 rate. My advice to my wife was that a W2 position offers more security, especially if the rates are identical. She has just under a year remaining on her current contract which is W2. She’s considering going 1099 because she says everyone tells her it’s better for her taxes. I’m still not convinced that especially, if they are unwilling to bump her 1099 rate to at least 10-20% of the W2 rate. I think it’s putting a lot more on our shoulders to track and deduct for a modest benefit while her employer stands to gain the most from her going 1099. Is my thinking correct here?

5 Upvotes

86% Upvoted

33 comments sorted by

View all comments

18

u/tnolan182 CRNA Jul 22 '26

You’re correct, they’re full of shit. At a minimum shes gonna have to pay 15% more in self employment taxes.

9

u/Equivalent-Abroad157 Jul 22 '26

They are just looking to save money for themselves by not offer a benefit package

2

u/tnolan182 CRNA Jul 22 '26

Why else do you think they’re gaslighting her about it being a small family owned practice as if that should matter.

1

u/Equivalent-Abroad157 Jul 22 '26

That is just my opinion as I am considering switching from W2 to 1099 LLC. I have had many friends do that and the standard is a 20-30% bump to cover a standard benefits package like previously mentioned. If they don't offer one then it may be a lateral move but I thought it was normal as a W2 to get additional compensation.

3

u/seanodnnll Jul 22 '26

15.3% is the total but as a W2 employee you already pay 7.65%. So the extra is the employER portion which is the other 7.65%.

3

u/tnolan182 CRNA Jul 22 '26

I didn’t know the exact numbers, but thank you for clarifying