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What's The Difference Between a 1099 and W-2 employee as a Healthcare Traveler?

As a healthcare traveler, you may find yourself unsure of the difference between being a 1099 independent contractor or a W-2 employee and you're classified as as a traveler, and you're not alone in this! We're often asked if Jackson Therapy Partners travelers are W-2 employees or 1099 contractors, and all JTP travelers are W-2 employees. But, you may find yourself presented with the option of being a W-2 employee or a 1099 independent contractor, so let's breakdown the difference between the two and what they mean for healthcare travelers: 

Taxes as a W-2 employee VS. 1099 independent contractor

One of the biggest differences between W-2 employees and 1099 independent contractor is how you handle taxes! As a W-2 employee you're a direct employee of the company, which means the company will allocate your taxes accordingly when running payroll. This also means you'll receive a W-2 every year from your employer to determine whether you owe taxes or are receiving a refund. As a 1099 independent contractor, you are paid an untaxed amount. To ensure you can pay your taxes when the time comes, we suggest taxing out a percentage and saving that for your tax payment. This also means that when taxes are due, you'll have to pay an additional self-employment tax. 


Benefits - who gets them? 

Benefits and whether travel healthcare professionals receive them is another common question we get. As a W-2 employee, you receive all the employee benefits offered by your agency! With Jackson Therapy Partners, you receive benefits starting day one of your contract which include a comprehensive Cigna health plan, matching 401(k), license reimbursement, and so much more. As a 1099 independent contractor, you unfortunately don't receive any employee benefits, since you are not a direct employee of the company. That means health insurance, housing, and retirement plans are your responsibility, but you also have more flexibility in the coverage you choose to have. 

Professional Liability Differences

As a W-2 employee, your employer benefits include coverage for situations that can occur while you're on the job. This includes workman's compensation, professional, and general liability coverage that's provided by your agency. This also means that as a 1099 independent contractor, you're responsible for finding and paying for your own liability coverage including workman's comp, professional, and general liability coverage in order to keep yourself protected from any accidents that may occur on the job. 

If you have any questions about what it means to be a W-2 employee versus a 1099 independent contractor, reach out to our team today and we'll answer any questions you have! 

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