We’re getting real about independent contracting in this week’s Spotlight!
This week we’re spotlighting Healthcare Worker Kassie Andrews and getting real about independent contracting. Kassie is an independent contractor in the Healthcare industry as a CRNA (a.k.a. Nurse Anesthesiologist) and took the leap from a W-2 arrangement to 1099 placements. Today, we’re talking about the benefits and drawbacks of contracting, taxes tips, and most importantly how to look out for yourself!
How long have you worked as a CRNA?
I graduated in December of 2015 and started working in early 2016. I worked full-time for a big hospital group for around three years with a W-2 arrangement. I worked 40+ hours a week and was on call on weekends, holidays, and overnight. Once my 401(k) fully vested, I found a more family-friendly position working four days a week without call. As of this summer, I no longer work full time for anyone, but rather work with five different groups across eight different facilities on a PRN (as needed) basis.
What are the benefits of working as an independent contractor in your industry?
Flexibility in scheduling, work/life balance, self-employment taxes benefits/deductions, and usually better pay. I love being able to say when and where I want to work. With my first job as a full time W-2 employee, I had to schedule time off over a year in advance! Now, I piece together my schedule how I see fit, working as much or as little as I’d like, depending on what my family has going on. I also enjoy working in different environments and not one place all the time!
Are there any drawbacks?
Most independent contractors (or 1099 placements) aren’t full time with a single employer, so there is the possibility of not filling your schedule or having gaps between contracts. Income can vary from month to month and can be harder to adjust if you’re needing/wanting/used to a consistent paycheck every two weeks. Generally, full time benefits like health insurance, disability, 401(k), malpractice, etc., are not available as a 1099 contractor and need to be covered by the contractor themselves.
Is working as an independent contractor something you’d anticipated?
I’d considered it previously, but it took me a while to get comfortable with the idea. There seems to be plenty of work to go around and I’m able to fill my schedule, but I was initially nervous I wouldn’t be able to find enough work and bring in what we needed financially.
What makes a company good to work with?
Free meals! Kidding… but it doesn’t hurt! I’m sure it’s different for everyone, but for me, the biggest thing is flexibility in scheduling, the work environment, and the compensation. An ideal contract has clear-cut terms laid out upfront and pays invoices promptly. My work is all local, but if I were to travel, the company would need to cover those expenses with an adequate per diem.
What advice do you have for other contractors?
Get your own malpractice insurance. Yes, it’ll cost you, but I’m always wary of contracts that cover malpractice. More likely than not, they are using something cheap and may not have your best interest in mind. Look out for yourself! Also, you may be able to negotiate a higher rate if you’re not using their malpractice insurance.
Always keep excellent records for tax purposes (hours, mileage tracking, expenses, etc.). Find a good CPA. Network, build relationships, and do not burn bridges. The best jobs usually aren’t advertised, but come from people who know (and like) you!
What do you wish you knew before becoming an independent contractor?
For tax purposes, I wish I had switched at the beginning of the year rather than halfway through. It would’ve been much cleaner in terms of the next year’s filing and the deductions I was eligible for.