Considering a Travel Job in Healthcare? Know Your Employment Type: 1099 or W-2.

A Simple Guide to Employment Classification in Travel Healthcare 

Understanding the difference between being a W-2 employee and a 1099 independent contractor is essential to protecting your career, your finances, and your peace of mind. At Jackson HealthPros, every travel professional is classified as a W-2 employee, giving you the stability and benefits of a full-time job, but with the kind of support you won't find in a staff position.  Still, you may encounter assignments at other travel agencies where you’re a 1099 independent contractor, and it’s important to know what that means for you. 

Differences in Handling Taxes

The most significant distinction between W-2 and 1099 employment in travel healthcare comes down to how taxes are managed.  

• W-2 Employees: Your employer withholds federal, state, and social security taxes directly from your paycheck. At the end of the year, you’ll receive a W-2 form that makes filing taxes more straightforward. This system helps you avoid the stress of unexpected tax bills and makes budgeting your income easier. 
• 1099 Independent Contractors: You receive your pay without any taxes withheld. While this may feel like more take-home pay at first, you’re responsible for setting aside money for quarterly tax payments and covering self-employment taxes. Careful planning and discipline are key to avoiding surprises during tax season. 

Who Receives Benefits?

Benefits are another key difference. As a W-2 employee with Jackson HealthPros, you enjoy a range of benefits from day one, including a comprehensive Cigna health plan, a matching 401(k), license reimbursement, and more.

In contrast, 1099 independent contractors do not receive employee benefits from their contracting agency. This means you’ll need to secure your own health insurance, retirement plans, and housing. However, this also offers more flexibility in choosing the coverage that best suits your needs.

Liability Coverage Classifications

One of the greatest advantages of W-2 employment is access to employee benefits. At Jackson HealthPros, travelers are offered: 

• A comprehensive Cigna health plan 

• A matching 401(k) retirement savings program 

• License and continuing education reimbursement 

• Support services to make each assignment successful 

By contrast, 1099 independent contractor may receive far more limited benefits through their agency. This means you may need to secure your own healthcare coverage, retirement plan, and sometimes even housing. While this offers more flexibility, it also places more responsibility on your shoulders—something worth weighing carefully.

Liability Coverage Classifications

Travel healthcare professionals know the importance of being protected on the job. Your classification determines how liability is covered: 

• W-2 Employees: Your employer provides professional liability, general liability, and workers’ compensation insurance—giving you peace of mind as you focus on patient care. 
• 1099 Independent Contractors: You must secure your own coverage to protect against workplace accidents, malpractice claims, or other legal issues. Without it, you may face significant personal risk.
   

If you have any questions about the differences between being a W-2 employee and a 1099 independent contractor, feel free to reach out to our team. We’re here to help clarify any uncertainties and support you in making the best choice for your career.