• Facebook
  • Youtube
  • Instagram
  • LinkedIn
Call us now: (602) 344 9865
Chelle Law
  • Home
  • Medical Contract Attorney
    • Dentist Contract Attorney
      • Dental Associate Employment Contracts 
        • Can a Dental Associate Break Their Contract?
        • How a Dentist Should Negotiate a Contract
        • How is a Dentist Given a Draw in a Contract?
        • Red Flags in a Dentist Employment Contract
        • What Should a Dentist put in a Termination Letter?
      • Dental Malpractice Insurance
        • Claims Made Insurance for a Dental Associate Explained
        • How Much Does Tail Insurance Cost for a Dentist?
        • Occurrence Based Insurance for a Dental Associate Explained
        • Should a Dentist Choose Claims Made or Occurrence Insurance?
        • What is Tail Insurance for a Dentist?
      • Dental Non Compete Clause
        • Dental Associate Non Compete vs Non Solicit
        • Dental Non Compete Mile Radius Explained
        • Dental Non Compete Time Limits Explained
        • Dentist Non Compete Restricted Offices Explained
        • Is a Non Compete Enforceable Against a Dentist?
      • Dental Contract Benefits 
        • Does a Dentist Have to Repay a Bonus if they Terminate the Contract?
        • How Much PTO Should a Dental Associate Get?
        • How Much Should a Dentist get for CE Expenses?
        • Should a Dentist be Reimbursed for Moving Expenses?
        • What Expenses Should a Dental Practice Pay For a Dentist?
      • Dental Independent Contractor Agreements
        • Are Dentists Usually Self Employed?
        • Dentist Independent Contractor Tax Deductions
        • Dentist Independent Contractor vs Employee
        • Is a W2 or 1099 Better for a Dental Associate?
        • What is a 1099 Dentist?
    • Nurse Practitioner Contract Attorney
      • Nurse Practitioner Employment Contracts
        • Can a Nurse Practitioner Break Their Contract?
        • How a Nurse Practitioner Should Negotiate a Contract
        • Red Flags in a Nurse Practitioner Employment Contract
        • What is the Most Common Nurse Practitioner Compensation Model?
        • What Needs to go in a Nurse Practitioner Termination Letter?
      • Nurse Practitioner Malpractice Insurance
        • Claims Made Insurance for a Nurse Practitioner Explained
        • How Much Does Tail Insurance Cost for a Nurse Practitioner?
        • Occurrence Based Insurance for a Nurse Practitioner Explained
        • Should a Nurse Practitioner Choose Claims Made or Occurrence?
        • Tail Insurance for a Nurse Practitioner Explained
      • Nurse Practitioner Non Compete Clauses
        • How Many Locations Should a Nurse Practitioner Non Compete Apply To?
        • Is 10 Miles a Reasonable Non Compete for a Nurse Practitioner?
        • Is a 2 Year Non Compete for a Nurse Practitioner Reasonable?
        • Is a Non Compete Enforceable Against a Nurse Practitioner?
        • Nurse Practitioner Non Compete vs Non Solicit
      • Nurse Practitioner Contract Benefits
        • Does a Nurse Practitioner Repay a Bonus if the Contract is Terminated?
        • How Much Paid Time Off Should a Nurse Practitioner Get?
        • Should a Nurse Practitioner be Reimbursed for Moving Expenses?
        • What Benefits Should be in a Nurse Practitioner Offer Letter?
        • What Nurse Practitioner Expenses Should an Employer Pay For?
      • Nurse Practitioner Independent Contract Agreements
        • Is a W2 or 1099 Better for a Nurse Practitioner?
        • Nurse Practitioner Independent Contractor Tax Deductions
        • Nurse Practitioner Independent Contractor vs Employee
        • Nurse Practitioner Self Employed vs Independent Contractor
        • What is a 1099 Nurse Practitioner?
    • Optometrist Contract Attorney
    • Physician Contract Attorney
      • Medical Employment Contracts
        • J-1
          • ECFMG Eligibility
        • How Many Years Should the Term of a Physician Contract Be?
        • Should a Physician Accept an Arbitration Clause?
        • What Is the Best Without Cause Termination Length in a Physician Contract?
      • Medical Malpractice Insurance
        • What Is Claims-Made Insurance For a Physician?
        • What Is Occurrence Insurance for a Physician?
        • Should a Physician Choose Claims-Made or Occurrence Malpractice Insurance?
        • What Is Tail Coverage for Physician Malpractice Insurance?
        • When Does a Physician Need to Pay for Tail Insurance?
        • How Much Does Tail Insurance Cost for a Physician?
        • 3 ways a physician can get out of paying for tail insurance
      • Non-Compete Agreements
        • Is 10 Miles a Reasonable Restriction in a Physician Non-Compete?
        • Is a 2-Year Physician Non-Compete Too Long?
        • How Many Locations Should a Physician Non-Compete Apply to?
        • Is a Non-Compete Enforceable Against a Physician?
      • Medical Professional Contract Benefits
        • How Much Should an Employer Give a Physician for CME Expenses?
        • What Physician Business Expenses Should an Employer Pay for?
        • How Much PTO Should a Physician Get?
        • Should A Physician Receive Relocation Reimbursement When Moving for a New Job?
        • Does a Physician Have to Repay a Sign-On Bonus When They Leave?
        • Does A Physician Have to Repay Relocation Assistance If They Leave?
      • Independent Contractor Agreements
        • Can a Physician be an Independent Contractor?
        • Physician Independent Contractor vs Employee
        • Is a W2 or 1099 Better for a Physician?
        • What is a 1099 Physician?
        • What Percentage of Physicians are Self Employed?
    • Physician Assistant Contract Attorney
      • Physician Assistant Employment Contracts
        • Can a Physician Assistant Break Their Contract?
        • How a Physician Assistant Should Negotiate a Contract
        • Red Flags in a Physician Assistant Employment Contract?
        • What is the Most Common Physician Assistant Compensation Model?
        • What Should Go Into a Physician Assistant Termination Letter?
      • Physician Assistant Malpractice Insurance
        • How Much Does Tail Insurance Cost for a Physician Assistant?
        • Should a Physician Assistant Choose Claims Made or Occurrence Insurance?
        • Tail Insurance for a Physician Assistant Explained
        • What is Claims Made Insurance for a Physician Assistant?
        • What is Occurrence Based Insurance for a Physician Assistant?
      • Physician Assistant Non Compete Clauses
        • How Many Locations Should a Physician Assistant Non Compete Apply To?
        • Is 10 Miles a Reasonable Non Compete for a Physician Assistant?
        • Is a 2 Year Non Compete for a Physician Assistant Reasonable?
        • Is a Non Compete Enforceable Against a Physician Assistant?
        • Physician Assistant Non Compete vs Non Solicit
      • Physician Assistant Contract Benefits
        • Does a Physician Assistant Repay a Bonus if the Contract is Terminated?
        • Should a Physician Assistant be Reimbursed for Moving Expenses?
        • What Benefits Should Go In a Physician Assistant Offer Letter?
        • What Physician Assistant Expenses Should an Employer Pay For?
      • Physician Assistant Independent Contractor Agreements
        • Can a Physician Assistant be Self Employed?
        • Is a W2 or 1099 Better for a Physician Assistant?
        • Physician Assistant Independent Contractor Tax Deductions
        • Physician Assistant Independent Contractor vs Employee
        • What is a 1099 Physician Assistant?
    • Veterinarian Contract Attorney
      • Veterinary Associate Employment Contracts
        • Can You Break a Veterinary Associate Contract?
        • How is a Veterinarian Given a Draw in a Contract?
        • How to Negotiate a Veterinary Associate Contract
        • Red Flags in a Veterinary Associate Contract
        • What Should be in a Veterinary Associate Termination Letter?
      • Veterinary Malpractice Insurance
        • What is AVMA Excess Limit Coverage?
        • What is AVMA Veterinary License Defense Insurance?
        • What is Occurrence Insurance for a Veterinarian?
        • What is the AVMA PLIT?
        • Why Veterinarians Do Not Need Tail Insurance
      • Veterinary Non Compete Agreements
        • How Many Locations Should a Veterinary Non Compete Apply To?
        • Is a Non Compete Enforceable Against a Veterinarian?
        • Veterinarian Non Solicit vs Non Compete
        • Veterinary Non Compete Mile Radius Explained
        • Veterinary Non Compete Time Limits Explained
      • Veterinary Professional Contract Benefits
        • How Much PTO Should a Veterinary Associate Get?
        • How Much Should a Veterinarian get for CME Expenses?
        • Must a Veterinarian Repay a Bonus if They Terminate the Contract?
        • Should a Veterinarian be Reimbursed for Moving Expenses?
        • What Veterinarian Business Expenses Should an Employer Pay For?
      • Veterinary Independent Contractor Agreements
        • Pros and Cons of Employment at a Corporate Veterinary Office
        • Should a Veterinarian be a W2 or a 1099?
        • Veterinarian Independent Contractor Tax Deductions
        • Veterinary Independent Contractor vs Employee
        • What is a 1099 Veterinarian?
  • Our Attorneys
    • Robert S. Chelle, Esq.
    • Renee Osipov, Esq.
    • Erin Howlett, Esq.
  • Results
  • Contact Us
  • Search
  • Menu Menu

Is a W2 or 1099 Better for a Nurse Practitioner?

Is it better to be a W2 or a 1099 as a nurse practitioner? First, if you are a W2, you are an employee and then you’ll have taxes withheld from your regularly scheduled payroll. And then at the end of the year, you’ll get a W2, just kind of summarizing all the taxes that were withheld. If you are a 1099, you are an independent contractor and then you’ll receive the 1099 at the end of the year, and no taxes will be withheld from your compensation at all. So, you will be responsible to pay those taxes either quarterly or annually, depending upon what you want to do. That’s the main distinction between the two.

Now, the benefits of being a W2 as an employee are, you’ll get all of the great ancillary benefits of being an employee. Most organizations, they’re going to offer you health, vision, dental, disability, life, and retirement. They’re going to pay for your continuing education, licensing board, board cert, any kind of privileging, credentialing, you’ll get paid time off, whereas as a 1099 independent contractor, you’re not going to get any of those things. You are going to be responsible for paying all of that, including malpractice insurance. And if you have a claims-made policy, tail insurance as well. Now, just because you’re working as an independent contractor 1099, it doesn’t mean you can’t deduct all those business expenses, but you need to set up your kind of corporate structure in the correct way. So, you should create an LLC, get an EIN, create a bank account, and then funnel all the compensation and expenses through that account so that you can keep track.

And then at the end of the year, you can deduct all those as business expenses. So, licensing, malpractice, health insurance, vehicle expenses, kind of all the things that would go into being a nurse practitioner for an organization, you can deduct if you’re an independent contractor. Now, which one is better? It just depends. I mean, theoretically, you should make more as an independent contractor because the employer is not paying for any of your benefits, any of your malpractice, they’re not paying employment tax. If you’re an employee, an employer has to pay employment tax, it’s usually somewhere between 10 to 12%. So, they’re probably saving around 15 to 20% by not giving you any of those benefits, not having to pay employment tax. At least some of that should pass through to the nurse practitioner, meaning, if you’re going to make the exact same amount as an employee versus an independent contractor, it probably makes sense to be the employee. Other pages of interest include:

  • What is a 1099 Nurse Practitioner?
  • Nurse Practitioner Self Employed vs Independent Contractor

Now, many nurse practitioners simply don’t want to deal with the hassles of finding all of those things. They don’t want to find their malpractice. They don’t want to get health insurance, dental, vision, retirement, life, disability, all that kind of stuff set up. They don’t want to deal with it. And in that scenario, you have to find an employment opportunity. Now, the most likely opportunities you’ll have to be an independent contractor will be kind of short-term, part-time stuff. Or maybe you’re just going to work for a practice two weekends a month or something like that, just for half a Saturday. Well, in that scenario, it doesn’t really make sense for you to be an employee or for them to offer you all those benefits. And that would be kind of a normal role to be classified as an independent contractor.

Whereas if you’re working Monday through Friday, nine to five, and the employer is asking you to be an independent contractor, they’re likely misclassifying you. The IRS releases a 20-factor test that kind of goes through, alright, these are the things that can make you an employee. These are the things that can make you an independent contractor. If you’re concerned that you might be misclassified in some way, I would go through that test and then approach the employer with those concerns prior to signing an independent contractor agreement or an employment agreement after the fact, although it’s very rare. The IRS could come back, look at your employment relationship, and then state, oh, you’ve been misclassified. And then all of these back taxes will be owed usually by the employer. I have seen in some independent contractor agreements that the employer basically states if it’s found that you were misclassified and the employer has to either pay a penalty or fight it in court or whatever that the nurse practitioner will be responsible for those things, in addition to attorney’s fees.

That’s an unconscionable clause. I would never sign that. So, just be careful about that when looking at an independent contractor agreement or an employment agreement as well. Anyway, that’s kind of the difference between the two and maybe why one might work for you over the other. I mean, most of the time, an NP is going to be an employee. It’s very rare, unless, as I said before, it’s kind of like a part-time position that it would make sense to be an independent contractor. I would suggest talking to an accountant before doing any of this. I’m not a tax attorney. So, I’m just kind of giving you my side on the employment and contract side. But meeting with an accountant who can kind of set up these things for you and give you the best advice on maximizing your tax deductions makes the most sense. Hopefully, that’s helpful.

Employment Contract Questions?

Contract Review, Termination Issues, and more!

For More Information >

Call Us Now: 602.344.9865

Contact Us

If you are in need of assistance or would like to hear more about the services we offer contact Chelle Law today!

Links of Interest

  • Home
  • Nurse Practitioner Contract Attorney
    • Nurse Practitioner Employment Contracts
    • Nurse Practitioner Malpractice Insurance
    • Nurse Practitioner Non Compete Clause
    • Nurse Practitioner Contract Benefits
    • Nurse Practitioner Independent Contractor Agreement
Google
Based on 121 reviews.
Melinda Striyle
Melinda Striyle
2022-06-12
Attentive, respectful, great to work with.
Jenn Lighthall
Jenn Lighthall
2022-06-10
Absolutely fantastic. I would give more than five stars if I could. Highly recommend!
Meghna C.
Meghna C.
2022-05-31
Renee was great to work with when negotiating my contract! I am a resident physician signing on for my first attending job, and I felt more comfortable with the language used in the contract after going over it with Renee. I also got a higher starting salary which made the price more than worth it. I would definitely use Chelle Law again!
Jennifer Nevis
Jennifer Nevis
2022-05-30
Erin Howlett saved me from a terrible situation and I can't thank her enough. I had accepted a veterinary dental residency in northern Illinois with a private practice. The letter of intent was routine yet the actual contract so punitive and predatory in nature that it was hard to believe it was from the same people. Erin believed I was worth more than the "Zero" this practice claimed. Without her on my side, I would have naively signed this "bait and switch" and been finacially and professionally ruined if I couldn't complete the 6 year commitment this practice demanded.
robin singh
robin singh
2022-05-27
I consulted with Chelle law for contract review. They were suggested by our employer. Renee osipov was incredibly helpful and was able to navigate me in right direction. I fully recommend them.
Melanie Schlote
Melanie Schlote
2022-05-22
Erin was so professional and very quick to respond. She took the stress away from contract reviewing and made me feel confident in this next step of my career.
Mitul Patel
Mitul Patel
2022-05-22
I contacted Chelle Law for my dental contract review. I am very pleased with contact review with Attorney Renee. Renee was very kind, helpful, honest, informative and knowledgeable. She had some solid advice regarding negotiations. Katie was very helpful to schedule appointment with Renee within few days. I had some questions next day and emailed her and she responded back to me within an hour. I HIGHLY RECOMMEND CHELLE LAW FOR YOUR CONTRACT REVIEW. THANK YOU!!
Anna Etzler
Anna Etzler
2022-05-20
Renee was wonderful to work with and helped me with a contract review for my first NP job. She took the time to help me understand each section of the contract and even helped me successfully negotiate so that the contract would best fit my needs. Chelle Law was very responsive to my needs and set up my initial review and revision review in a timely manner! I would highly recommend their services to anyone in the medical profession.
Alan W
Alan W
2022-05-16
Had the privilege of working with their attorney Renee. She was really thorough, professional, and went above and beyond in reviewing my contract. Couldn't have asked for a better experience.

Call Us Today!

602.344.9865

Hours/Office

Monday-Friday: 8:00am-5:00pm (MST/MDT)

Chelle Law 5425 E. Bell Rd, Ste 107

Scottsdale, AZ 85254

Contact Us Today!

5425 E. Bell Rd, Ste 107, Scottsdale, AZ 85254

info@chellelaw.com

Practice Areas

  • Professional Licensing Board Defense
  • Medical Contract Lawyer
  • Administrative Appeals & Hearings
  • Medical Contract Drafting
  • Fingerprint Card Attorney

Office Locations

  • Arizona
  • Indiana

Company

  • Robert S. Chelle, Esq. Founder & CEO
  • Sara Stark, Esq. Attorney
  • Renee Osipov, Esq. Attorney
  • Erin Howlett, Esq. Attorney
  • Charlie Hover, Esq. Attorney

Resources

  • Blog
  • Contact Us

Follow Us

© 2022 Chelle Law. All rights reserved.  Disclaimer & Terms of Use.  Privacy Policy.

Scroll to top

How Much PTO Should a Physician Get Download



How Much PTO Should a Physician Get?

4 Factors to Consider with PTO

How Much Does Tail Insurance Cost Download

How Much Does Tail Insurance Cost for a Physician?

4 Key Aspects of Tail Insurance for Physicians

Physician Contract Review Checklist

Where Should We Send the Physician Contract Checklist?

28 Essential Physician Contract Terms to Put You in a Positive Financial Situation for Years to Come.