*This content is not tax, legal, or accounting advice.*
Choosing between being a W-2 employee or a 1099 contractor ultimately depends on your individual preferences, financial goals, and career aspirations. When considering ESHYFT’s employment model, we ultimately came to the conclusion that W-2 is the best because it has nurses’ best interests in mind:
- Legal Protections:
- W-2 employees have employment rights and legal protections under labor laws, including minimum wage, overtime pay, and protections against workplace discrimination. They also have access to workers’ compensation benefits if injured on the job.
- Job Security:
- W-2 employees typically enjoy more job security than independent contractors.
- Income Tax Simplification:
- Income taxes for W-2 employees are relatively straightforward. Taxes are withheld from their paychecks, and they receive W-2 forms for tax reporting, making tax compliance more straightforward compared to self-employment tax obligations.
- Training and Development:
- Employers often provide training and opportunities for skill development to W-2 employees.
ESHYFT is proud to be an employer of W-2 nurses, because we firmly believe that W-2 is the right classification of per diem nurses and is the approach that is most beneficial to nurses in the long run. Read more on W-2 stance here.