Check out the timestamps below to help you navigate through the many topics we discussed.
On This Episode:
As healthcare continues to evolve, CRNAs find themselves in a unique position – should they stick to the traditional W-2 employment model or transition to a 1099 independent contractor status? This is a trend that we’ve been monitoring for a few years now, and Jeremy was able to convince Sharon to make the transition to 1099. Now we want to share the experience with you and let you know what Sharon has learned since making the change. This is part one of a three-part session and we’re beginning with the big question in the CRNA industry: Does it make sense to go 1099? Join us as we explain the basics and help you better understand the differences between W-2, PRN, and 1099 work.
To set the stage for this entire discussion, it’s important to first understand the current state of the CRNA industry. With over 50 million anesthetics administered annually and CRNAs providing more than 80% of anesthesia in rural American counties, the demand for skilled anesthesia providers has never been higher. This growing demand, coupled with a wave of retiring CRNAs, sets the stage for a robust job market, making it an opportune time to explore 1099 opportunities.
Next we want to make sure you have a detailed comparison between W-2, PRN, and 1099 statuses. There are financial and lifestyle implications of each, and the choice ultimately depends on individual goals and circumstances. For those craving flexibility and higher earning potential, the 1099 route offers compelling advantages. However, it also comes with its own set of challenges, such as securing health insurance and managing retirement savings.
You can learn from the experiences of others along with case studies to illustrate the pros and cons of transitioning to a 1099 status. Sharon, who recently made the switch herself, highlights the newfound control over her schedule and the ability to choose her work assignments. From our perspective as financial planners, we want to make sure you know how 1099 CRNAs can maximize their earnings and tax savings through strategic planning. There are a number of benefits that come with being 1099.
But there are two sides to every decision and we can help you address the fears and uncertainties that come with such a transition. From understanding the nuances of tax planning to navigating the complexities of health insurance, we can offer actionable advice to help CRNAs make informed decisions.
We would love to help you decide which path is best for you. In the meantime, reflect on your personal "why"—the underlying reason for considering a switch to 1099. Whether it's achieving a better work-life balance, accelerating retirement savings, or simply making more money, understanding this motivation is crucial for a successful transition.
Here’s some of what we discuss in this episode:
- Exploring the state of the CRNA industry and why now is a great time to be in the freelance market.
- The differences between W-2, PRN and 1099 employees.
- The reasons Sharon finally made the decision to go 1099.
- Some of the biggest reasons to consider 1099 work like tax savings, more opportunities to save, more control, and other pros.
- What are you giving up if you decide to go 1099?
- How Jeremy helps his CRNA clients determine if it’s best to go 1099 or not.
- Be aware of the cons that come with going 1099.
Check out two episodes referenced in this episode:
Understanding Malpractice Insurance Options with the AANAs John Fetcho
How CRNAs Can Protect Their Great Asset: Yourself
The 1099 CRNA Institute: https://aana.com/1099
***Use coupon code BEYOND1999 to get 20% off through November 2024
Donate to Our Heart Your Hands here: https://www.ourheartsyourhands.org/donate
"We've got a good eight years, maybe ten years that things are going to be good, and then it gets murky. You don't know how to kind of gauge where it will be after that. But I would say the next ten years or so are going to be really, really good in the 1099 market."
- Jeremy Stanley, CFP®
