I am new to the Locums world. I wanted to see what is the best comparison of W2 vs 1099. How can I compare the two incomes on hourly and annual basis? I’m debating if I should take a W2 job because 1099 work in my area cap at $1600/day. Thanks for the advice!
Comparisons are difficult depending on someone situation.
If you are married (like me) with 2 kids and non working spouse.
35% tax bracket kicks in at around 460k agi for married.
35% tax bracket kicks in at around 225k for single/head of household
So if u are single. W2 means you pay 20k more in federal taxes for same 500k ish w2 income (agi is after deductions).
So the question is
1. Are you single?
2. If you are married, does ur spouse have access to good healthcare (20k value if ur spouse is a teacher with good state employee insurance)
Those are the two most important questions you need to answer before we can quantify 1099 vs w2 FOR YOU.
answer that. And I can proceed to tell you what works in your favor
As for me. My state job is pretty good. 450k with lots of pretax deductions and benefits as w2. A comparable job would need to net me close to 550k 1099 no calls or weekends and 11 weeks off and 40 hours a week.
So my comparison means I would need to find a 1099 job that can consistently provide me 7-3/5 pm job at around $330-350/hr 1099. The key word being consistently. And I find it really hard to find a job like that 1099.
Of note. I do have side gigs 1099 to supplement my w2 income.
So let us know ur sit situation and we can give u better advice and also depends how much you want to work.