Blade. I agree with everything u saidThe Best of Both Worlds
Perhaps the best of both worlds is to get some of your income as an employee and some of your income as an independent contractor. That way you can write off all your work expenses that are required for your independent contractor job (but are used for both jobs—like CME, uniforms, licensing fees, DEA fees, specialty society dues, etc.) against your 1099 income. This way also lets you have your employer provide your benefits and at least the employer portion of the Social Security taxes, which are the lion's share of the payroll taxes for a doctor with a median physician income.
Another bonus of having two jobs is you may get two 401(k)s as well, allowing you to protect more of your hard-earned money from both Uncle Sam and any potential future creditors.
W-2 vs. Self-Employed | White Coat Investor
Is it better to take a job as an employee or as an independent contractor? The short answer is "it depends." The best answer may be "both."www.whitecoatinvestor.com
How often are you taking call and weekend though? Is your average number of hours per week 40 hours? (Averaged over a 40 week work year). It's important to make apples to apples comparisons which can admittedly be challenging to do and factor in all the benefits.
The Best of Both Worlds
Perhaps the best of both worlds is to get some of your income as an employee and some of your income as an independent contractor. That way you can write off all your work expenses that are required for your independent contractor job (but are used for both jobs—like CME, uniforms, licensing fees, DEA fees, specialty society dues, etc.) against your 1099 income. This way also lets you have your employer provide your benefits and at least the employer portion of the Social Security taxes, which are the lion's share of the payroll taxes for a doctor with a median physician income.
Another bonus of having two jobs is you may get two 401(k)s as well, allowing you to protect more of your hard-earned money from both Uncle Sam and any potential future creditors.
W-2 vs. Self-Employed | White Coat Investor
Is it better to take a job as an employee or as an independent contractor? The short answer is "it depends." The best answer may be "both."
You can have multiple 1099 jobs. I have 3. You can max out your 401k contributions. Mine's based on my S-corp salary, which I really need to contribute more to now that it's November.
There are years I had 4 retirement plans. 3 of them through my W-2 job and one through my 1099 gig. I am not doing enough 1099 work to fully fund the LLC retirement plan. Typically, an LLC/S-Corp can have one retirement plan plus a Cash Balance plan or Defined Benefit plan. You can put away as much as $250,000 or more combined through those plans. For example, let's say Neutro earns $600K as a 1099 worker. He can set up his business to put away as much as $250K or more per year into his retirement plans depending on his age. That's how you get ahead in terms of early retirement planning.
www.emparion.com
No calls or weekends homie. I average 36-38 hours a week. It’s daytime job. 450k w2 with state benefits and state holidays and 9 weeks off. So really 11-12 weeks off. A few free days here and there
That sounds like a great setup. I am in a W2 position with call. I make more than you, about 575k. But my state has > 9% tax. So the extra 125k gets taxed 48% and now is only 65k. A daytime W2 job combined with picking up call as 1099 seems like the ideal setup to take home the most $$.
It depends. I have been called the "GI Queen" because for a while, I was in GI all the time in 2 locations. I don't mind GI, but I don't like it every day. One place said it was because they couldn't put their AAs in GI because the patients were too sick, so it had to be docs. It's gotten better, and I've gotten more case variety. In another location, I've also had great case variety. One place put us with a dangerous surgeon that no one in the main group liked. Eventually, after a few complaints from people in the little group I'm in about the same surgeon, we all refused to work with him and said that the main group had to work with him because none of us were willing to work with him.
Are you contracting directly or going through a locums company?
I guess as others have said, as a 1099 side gig, I'm my own boss and have a lot more say. I am otherwise doing supervision
Technically agency. Agency that is 100% wholly own by AMC that has had exclusive contract with the hospital for 12 plus years.
Mine when I was state employee in one southern state was $0 premium plus free prescription
You still must pay taxes. In fact, your taxes on the first $160,000 of income will be higher than W-2. 1099 allows you to deduct many more things vs W-2 so for higher wage earners ($500K ++) the advantages exceed the disadvantages. The key is a Cash balance plan or Defined Benefit Plan. Almost all successful high earning 1099 people have such a plan. Have you watched any You Tube Videos on the subject?
You still must pay taxes. In fact, your taxes on the first $160,000 of income will be higher than W-2. 1099 allows you to deduct many more things vs W-2 so for higher wage earners ($500K ++) the advantages exceed the disadvantages. The key is a Cash balance plan or Defined Benefit Plan. Almost all successful high earning 1099 people have such a plan. Have you watched any You Tube Videos on the subject?
Typically, those earning a gross 1099 income of $200,000 or less may want to consider a S corp set-up.
2024 Social Security Tax Limit
The federal government annually limits how much of your earnings are subject to the Social Security tax.www.investopedia.com
I have a full time W2 job and doing 1099 on the side l. I Don’t think I’ll hit 160k in my 1099 job. So I’m going to get taxed a **** ton ? Is this worth it ?You still must pay taxes. In fact, your taxes on the first $160,000 of income will be higher than W-2. 1099 allows you to deduct many more things vs W-2 so for higher wage earners ($500K ++) the advantages exceed the disadvantages. The key is a Cash balance plan or Defined Benefit Plan. Almost all successful high earning 1099 people have such a plan. Have you watched any You Tube Videos on the subject?
Typically, those earning a gross 1099 income of $200,000 or less may want to consider a S corp set-up.
2024 Social Security Tax Limit
The federal government annually limits how much of your earnings are subject to the Social Security tax.
First, you don't owe Social Security taxes on the your side gig. You will owe Obama care tax and Medicare taxes. You should find deductions for your side business:
My rule of thumb is to try to deduct 50% if making less than 100k 1099 side gig
No. You deduct them in the year you buy them. If you don't have enough 1099 income then you can go negative for expenses. IRS allows negative income years for several years. But, I highly doubt you won't earn enough money to be able to deduct all your equipment the same fiscal year.
Ski trip (online cme)
Some do double dip.
You make a strong case for the flat tax 😉
Any advice for which site to use for travel cme? Someone pointed me to American Seminar but don't know how legit this site is.
Travel medical seminars is what I used in the past. Just get the short course $460. U just need some documentation in case of an adult.
Well that includes solo 401k for me and the non working spouse (some people have defined benefits plan putting away 150-200k also)
Do you mean 200,000 or more? I was always told s-corp is better for higher 1099 incomesYou still must pay taxes. In fact, your taxes on the first $160,000 of income will be higher than W-2. 1099 allows you to deduct many more things vs W-2 so for higher wage earners ($500K ++) the advantages exceed the disadvantages. The key is a Cash balance plan or Defined Benefit Plan. Almost all successful high earning 1099 people have such a plan. Have you watched any You Tube Videos on the subject?
Typically, those earning a gross 1099 income of $200,000 or less may want to consider a S corp set-up.
2024 Social Security Tax Limit
The federal government annually limits how much of your earnings are subject to the Social Security tax.
It's a stronger case for 87,000 more IRS agents or whatever the Fox News soundbite was.
Do you have accountant or do your own on turbo tax ?
I been doing just schedule c
Who wants to work in S***hole like Chicago, that add might as well be taken down. As was said before even ASCs now pay in the $300.... looks like either an old ad or a CRNA posting
Not really conflict of interest it makes financial sense..... Locums firms are up-marking hourly north of 20% now, for what? Your wholeslare malpractice insurance costs very little... even on the high end if you are paying your own perdiem rates for malpractice its $125-150 a day.... these guys are ripping at $100 / HOUR! they make up to $1000 off of you DAILY!.... for providing zero services essentially... once you have been recruited by the hospital through them there is no value added.... except for malpractice cost described above. Some larger firms MAYBE borrowing money to pay you while they wait for the hospital to pay them, which is highly unusual as most of their contracts stipulate that they will only pay you if THEY can get paid.... of course It is smarter for Management Firms to use their own 1099 wing...... what would be even smarter if that wing would pay you more money of course that is not the case, they will just pocket it.
It just shows u how lazy hospital admin is. They need to create their own in house staffing agency and cut the middle guy out.
I was in a PP group W2 pay but several of us set up individual C Corps and our group paid us as 1099 workers so we could do our own deductions. This was in CA and a full time job. I had a good CPA. Made my house address my home office for the corp. Corp paid me rent monthly which is taxable income so saves nothing. But then Corp could write off 15% of utility bills, lawn care costs, homeowners ins. Redid one bathroom which was the business bathroom so wrote off remodel. Office (or sometimes non-office) furniture. In CA, if you put in corp docs the correct provision, the next year (after you do not use your disability insurance), you can reimburse yourself the cost of disability insurance from the prior year and the disability ins won’t be tax deductible if you have to use it. Not sure how that might work in other states but worth checking out. If house is home business address, 1st daily commute to office is done when you wake up. Any trip to work is then a business trip so anywhere you drive to work is deductible mileage. Instead of cents/mi for my car I wrote off legally about 70% of my car payment, car ins, car repairs, etc. My CPA had me write off the entire car payment instead of the 70% and said in the unlikely instance I got audited I would have to pay back 3 years worth of tax savings on that. I did this for 15 years without an issue so came out ahead. All the other stuff you mentioned is legal to deduct.
