Скачать или смотреть 3 Decoding 1099 vs W2 Jobs: A Guide for Making Informed Employment Decisions

In this episode of The Health Coach OT, Dr. Jaclyn Schwartz interviews Matthew Shiebler, CPA, about the financial implications of W-2 employment versus 1099 independent contractor status for healthcare professionals. Matthew, with over 25 years of accounting experience and specialization in working with therapy professionals, provides valuable insights into the pros and cons of each employment classification, helping listeners make informed decisions about their career paths.
Key Points Discussed

Fundamental differences between W-2 and 1099 status:

W-2 employees: Employer withholds taxes and matches Social Security and Medicare contributions
1099 contractors: Responsible for paying all taxes themselves, including self-employment tax
W-2 employees qualify for unemployment benefits; 1099 contractors typically don't


Benefits considerations:

W-2 positions often include health insurance and retirement contributions
1099 contractors must arrange their own benefits but have more flexibility in choosing plans
Some retirement options (like SEP IRA or Solo K plans) offer 1099 contractors greater tax advantages

Tax implications:

1099 contractors can deduct business expenses on Schedule C
Recent tax law changes eliminated unreimbursed employee expense deductions for W-2 employees
Cell phones, mileage, and other work expenses may be deductible for 1099 contractors


Evaluating offers:

Compare total compensation packages (salary plus benefits for W-2 vs. higher hourly rate for 1099)
Consider the value of employer-provided benefits versus the flexibility of choosing your own
Factor in tax implications and additional expenses when comparing offers


Red flags when considering 1099 positions:

Employers who pay you as a 1099 contractor but treat you like a W-2 employee
Lack of written contracts
Unclear malpractice insurance coverage
Poor reputation for timely payments or regulatory compliance



Practical Tips

Create a spreadsheet to compare the total value of different employment offers
Consider forming an LLC if working as a 1099 contractor to legitimize your business status
Always get contracts in writing and clarify who covers malpractice insurance
Research potential employers by speaking with current contractors before accepting positions
Determine if combining a W-2 position with a 1099 "side hustle" might be the best approach

About the Guest
Matthew Shiebler, CPA, is the owner of Interactive Accountants and has been practicing accounting for over 25 years. His firm specializes in working with healthcare professionals, including occupational, physical, and speech therapists. Matthew has extensive experience helping therapy professionals navigate HIPAA-compliant bookkeeping, identifying valuable tax deductions, and making strategic financial decisions.

Resources Mentioned
For income tax services or more information, contact Matthew Shiebler at [email protected]

Connect with The Health Coach OT
Website: www.healthcoachot.com
Instagram: @HealthCoachOT
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