As you start your career as a Certified Registered Nurse Anesthetist (CRNA), it's important to understand the different employment arrangements available to you. Three common positions you may come across are W2 positions, staff 1099 positions, and locum positions.
A W2 position is a typical full-time job where you are an employee of a healthcare facility or anesthesia group. Your employer will provide benefits and handle tax withholdings on your behalf. At the end of the year, you will receive a W2 form for tax purposes. This position often comes with benefits including a 401k match, potentially profit sharing, medical, health, disability insurance and continuing education funds annually.
On the other hand, staff 1099 position is a full-time, long-term role usually with a contract lasting one to three years where you work as an independent contractor. You will invoice the facility or anesthesia group for your services and are responsible for paying your own taxes. While the pay rate may be similar to a W2 position, it is slightly higher to account for the taxes you will need to cover. This position does not come with any employer provided benefits.These positions typically do not come with travel stipends as they are long term contracts typically in the area where you reside.
Lastly, locum positions offer short-term assignments at a higher hourly rate. These roles can be canceled at any time, so it's important to be aware of the cancellation policies in your contract. These positions typically range in three to six month assignments but may also be extended at times with your the contractors consent. These positions often come with travel costs covered such as hotel, rental car, airfare and meal stipends. Some places reimburse expenses with receipts and other provide funds up front.
Understanding the differences between these positions can help you make informed decisions about your career path as a CRNA.
For upcoming CRNA graduates, I strongly advise seeking the guidance of a business attorney or CPA when considering the 1099 route. It is crucial to address this early on rather than waiting until tax season, as failing to do so can lead to falling behind on important legal responsibilities. Handling a substantial CRNA salary incorrectly can result in significant tax liabilities, so it is essential to ensure proper compliance from the start.
