Help me negotiate a salary

[asahi88]

Hi everyone,

Thanks so much for reading this. I'm feeling lost and need some advice. I'm evaluating a new employment offer and the benefits amount to roughly $50k (excluding malpractice insurance).

The thing is, I also have the option to work as an independent contractor (1099). If I do this, what salary should I be asking? Do I just add the $50k to whatever they are offering, or is there some kind of a conversion factor between W2 and 1099 salaries? My attempts at Googling this topic has proven fruitless.

I'm guessing they have an incentive to hire me as 1099, as they'll save money on payroll taxes. But I haven't factored that in my calculation; I don't want to seem too greedy.

What would be your approach? Thanks for your help.

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[chessknt]

My first reaction is that this is shady--you are either w2 or not, you don't get to pick and the irs has a strict definition for this.

Assuming it is legit 1099 means you get to write off everything (mileage, insurance costs, meals, licenses etc) which ends up reducing your tax exposure. I'd say at minimum you'd be looking for a 20% differential as a 1099 due to the expenses incurred. If you are having to pay for your own health insurance (ie no spouse plan) you should see whatbthatonthlynexoense is and roll that in to the number of hours you want to work on top of the 20% premium.

 

[asahi88]

chessknt, thanks for your input. So basically, my employer owns 5 or 6 clinics in the area and he hires docs to run them and/or cover as needed. Do you think that, as far as the IRS is concerned, would this be a clear cut W2 situation? Let's say, if I did a bit of locums on the side, would that justify the 1099?

He already has an independent contractor working for him... so I guess either it's legit, or the IRS hasn't noticed yet?

 

[chessknt]

chessknt, thanks for your input. So basically, my employer owns 5 or 6 clinics in the area and he hires docs to run them and/or cover as needed. Do you think that, as far as the IRS is concerned, would this be a clear cut W2 situation? Let's say, if I did a bit of locums on the side, would that justify the 1099?

He already has an independent contractor working for him... so I guess either it's legit, or the IRS hasn't noticed yet?

You can look up the irs definition. It is incredibly common for independent contractor definition to be abused by employers because it absolved them of a ton of costs and responsibility.

Any other work you do on the side should have no bearing on your employment s atus at your main job.

 

[NotAProgDirector]

Only choose a 1098 independent contractor if you really know what you're doing. It's much more complicated for you. Looking at your post, you should just take a regular W2 position. The 1098 is much more complicated for you. Even if you get paid more, it may not be worth it.