The need for qualified talent with a specific skill set continues to be on the rise. Many consultants have been working as road warriors for the majority of their career and already have a set of working parameters. However, there are many professionals who are entering this candidate-short market.
As recruiters, we often believe that the choice between 1099 and W2 is with the consultant. After all, there are many benefits to working as a 1099 or independent contractor, right? You can:
- Set your own schedule;
- Name your own rate;
- Establish where & when you’re willing to travel; and
- Write off business expenses, etc.
What many consulting firms fail to truly understand is the risk associated with 1099 workers. If consultants are misclassified and one of the many State & Federal Agencies conduct a random audit, back taxes, workers comp, unemployment costs, etc. can be levied along with the fines associated with each.
In reality, consultants have more impact on their schedules, travel and rate than ever before. As a W2 employee, you still have the ability to:
- Set your own schedule;
- Name your own rate;
- Establish where & when you’re willing to travel; and
- Write off business expenses that aren’t reimbursed through your contract.
The benefits to you to being paid as a W2 employee are:
- Security of working with a firm that follows the ever-changing labor standards, is current on State and Federal requirements related to taxes, unemployment, etc.;
- Access to the firm’s group medical benefits, dental, 401k & more;
- Competitive, fair market wages; and
- Protection through employer policies surrounding harassment, discrimination and equal opportunities.
The bottom line is that there are risks and benefits associated with both for the consultant and the client company when it comes to classifying employees. It is clear that there are many options for consultants in the Healthcare IT space at this time, but when it comes to choosing 1099 or W2, consider carefully and ask a lot of questions in order to make the best decision in the end.
For more information, please reach out – Marybeth.seaman@greythorn.com or 425-387-8848.