Not all nursing apps are the same

Choose a staffing app that provides W-2 employee status

When you work with apps that classify you as a W-2 employee, like ESHYFT, you get paid overtime, holiday pay, and save yourself the headache of filing complicated 1099 independent contractor taxes.

Why does W-2 employment make sense for nurses and CNAs?

Why does
W-2 employment make sense for nurses and CNAs?

What’s the difference between a W-2 Employee and a 1099 Contractor?

W-2

1099

Liability Insurance

No need to worry about extra insurance. ESHYFT takes care of it.
You need liability insurance as a self-employed contractor.

Onboarding

Can receive onboarding, training, supervision, and remediation from facilities and ESHYFT.
The facility cannot provide supervision, training, or remediation to 1099 contractors unless they want to risk joint employer status.

Application

A more thorough application process.
Quicker, less thorough application process.

Overtime

No overtime pay.

Holiday Pay

No holiday pay.

Worker’s Compensation

ESHYFT makes sure you’re taken care of in the unfortunate event you get injured on the job.
Responsible for their own worker’s comp coverage.

Taxes

Taxes taken out of every paycheck. Receive W-2 forms for tax reporting, making tax compliance a breeze.

Independent contractors are responsible for withholding their own taxes. Filing taxes can be more complicated.

Rates

Rates are typically lower because ESHYFT provides benefits, overtime, holiday pay, and pays a portion of your social security tax.
Rates are typically higher due to lack of benefits, PTO, taxes, and insurance.

Proof of income

Easier to provide proof of income for things like housing, loans, and credit cards.
More challenging to provide proof of income as an independent contractor.

Unemployment pay

Eligible for unemployment pay.
Not eligible for unemployment pay.

Tax differences between employees and independent contractors

1099 employee

While an independent contractor’s pay rate may seem higher at first glance, they are responsible for paying income tax and self-employment tax.

W-2 employee

A W-2 staff member is considered an employee of the company, and the employer is required to withhold income taxes, Social Security, and Medicare taxes from their pay. No additional tax payments are needed from W-2 employees.

Working 2,250 hours as a 1099 Working 2,250 hours as W-2 with ESHYFT Get more with W-2
Total earnings $54,000 $57,000 $3,000
Earn more with holiday pay + overtime pay
Regular hours $48,000
2,000 hours x $24/hour
$48,000
2,000 hours x $24/hour
Overtime $4,800
200 hours x $24/hour
$7,200
200 hours x $24/hour
x 1.5 overtime rate
$2,400
Holidays $1,200
50 hours x $24/hour
$1,800
50 hours x $24/hour 
x 1.5 holiday rate
$600
Medicare & Social Taxes $8721.00
15.3% paid by you
$4,360.50
7.65% paid by you
$4,360.50
7.65% paid by ESHYFT
$4360.50

Which nurse staffing apps use 1099 independent contractors, and which use W-2 employees?

W-2 Employees
1099 Independent Contractors

W2 is the right classification for nurses

There are no surprise tax bills at the end of the year
As a 1099 contractor, a nurse can expect to pay 15-16% of their pay in self-employment taxes.  As a W-2 employee, taxes are automatically taken out of your paycheck.
Holiday and overtime pay
As a W-2 employee, you are guaranteed holiday pay and overtime, while 1099 contractors are not.
You are managed and supervised by your facility
Technically, a 1099 contractor cannot be supervised or instructed by facility staff, which can potentially lead to dangerous scenarios for the nurse, residents, and facility staff.
Worker’s comp has you covered
If a W-2 employee gets injured on the job, they have access to workers’ compensation benefits. As an ESHYFT nurse, we make sure you’re taken care of in the unfortunate event you get hurt.

With ESHYFT you get more than W-2 employment

The best app

Really! We're the highest-rated app for per diem nurse shifts.

Flexibility

Choose when, where, and at what rate you work.

PayOnDemand

Get early access to your earnings through PayOnDemand.

24/7 Support

Our team is here for you.