Perks of W2 Employment for Anesthesiologists and CRNAs
As the nationwide shortage of anesthesiologists and CRNAs continues, job offers for anesthesia providers become increasingly lucrative. If you are an anesthesia provider, you have likely stumbled across a job posting that sounded too good to be true. Chances are, it was. Being mindful of the stark differences between W2 and 1099 employment opportunities is of critical importance when considering anesthesia job opportunities. Here, we will explain the top benefits of W2 employment and outline the requirements of 1099 employment.
Basics of W2 Employment for Anesthesia Providers
Accepting a W2 employment position comes with a myriad of benefits. In addition to better job security when compared to 1099 contractors, W2 employees are relieved of the headache that comes with owning your own business. Rather than keeping up with your own tax payments, bookkeeping and retirement planning, W2 employees can focus more on patient care and enjoying their time away from work. As a W2 employee, your employer handles your tax payments and retirement contributions for you. Full-time W2 employees are also typically eligible for participation in group health insurance plans, lucrative 401k plans and may enjoy paid time off.
IRS Implications of W2 Employment
The Internal Revenue Service (IRS) requires employers to withhold W2 employee income taxes and pay Social Security, Medicare taxes and unemployment tax on wages paid to an employee. This makes it incredibly easy for W2 employees to do their taxes each year. As a W2 employee, you can rest assured that your employment type is not under IRS scrutiny. On the other hand, 1099 independent contractors must meet a litany of IRS rules for qualification. The general rule of the IRS is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, not what will be done and how it will be done.
The extent to which services performed by the worker are a key aspect of the regular business of the company is also a concern of the IRS when it comes to determining 1099 eligibility. For independent contractors working long-term assignments, meeting this requirement of the IRS can be questionable.
Employer Benefit Packages for W2 Employees
While 1099 job opportunities may be offered at higher salaries than W2 opportunities, keep in mind that you must pay your own taxes and insurance premiums and hopefully invest for retirement from this compensation. Although W2 job opportunities may be advertised at lower salaries, the benefits offered through W2 employment may be more valuable than the higher salaries of 1099 positions. Every employer offers their own unique set of benefits; for example, DPI Anesthesia offers, at a minimum:
- A $1,500 annual continuing education stipend
- Six weeks/30 days of paid vacation time
- A 401k with a 6% employer match and profit share component that is currently near 3%.
Job Security of W2 Positions
W2 employees enjoy a level of job security that is simply not possible for 1099 contractors to achieve. In fact, the IRS states that the permanency of the relationship is one of the determining factors of whether an individual is an employee or an independent contractor. According to the IRS, the expectation that the working relationship will continue indefinitely, rather than for a specific project or period, is generally seen as evidence that the intent was to create an employer-employee relationship.
Training Opportunities Through W2 Employment
Speaking of IRS regulations, did you know independent contractors are only allowed to receive limited job instructions? Training a worker on how to do the job—or periodic on-going training about procedures and methods—is evidence the worker is an employee rather than an independent contractor. DPI Anesthesia happens to be home to leading educators on topics ranging from opioid-free anesthesia to the business of anesthesia. We routinely offer educational opportunities for our employees and always promote accessibility to seminars and trainings. We keep anesthesia providers on our team for the long-haul and work hard to ensure every provider’s skills are as sharp as possible.
Are you an anesthesia provider interested in W2 employment opportunities? Visit our Careers page for more information on our openings.