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

A Simple Guide to Employment Classification as a Healthcare Traveler

If you're considering a travel healthcare job, understanding how you'll be classified as an employee is an important part of evaluating an opportunity. Most travel healthcare professionals will encounter two common employment structures: W-2 employment and 1099 independent contracting. At Jackson HealthPros, every travel professional is a W-2 employee. That means you can work full-time on a travel contract while receiving employee benefits and support, giving you the structure of traditional employment with the flexibility to work in different locations. You may also come across 1099 opportunities with other companies. Neither classification automatically tells you whether a particular job is the right fit, but the differences can affect how you're paid, how you handle taxes, what benefits you receive and what responsibilities fall on you. 

Differences in Handling Taxes

One of the biggest differences between W-2 and 1099 employment is how taxes are handled. 

• W-2 Employees: According to the IRS your employer withholds applicable federal, state and payroll taxes from your paycheck. You'll receive a W-2 at the end of the year with the wages and taxes reported for you, which can make tax preparation more straightforward.  

• 1099 Independent Contractors: Taxes generally aren't withheld from your payments. Instead, you're responsible for tracking your income, setting aside money for taxes and handling any required estimated tax payments. Independent contractors are also generally responsible for self-employment taxes.  

The IRS highlights an important thing to remember, that the amount you receive in each paycheck doesn't tell the whole story. When comparing W-2 and 1099 opportunities, look at your overall compensation and responsibilities, not just the advertised pay rate. 

Who Receives Benefits?

Benefits are another key difference between the two employment structures. As a W-2 employee with Jackson HealthPros, travel professionals have access to employee benefits, including a Cigna health plan, matching 401(k), license reimbursement and other support. 

With a 1099 arrangement, you're generally not offered benefits from the company you're contracting with. You'll typically need to arrange your own health insurance and retirement savings, and you'll be responsible for understanding which business and travel expenses you may be responsible for. 

That doesn't necessarily mean one structure is right for everyone. It means you should compare the full compensation package and consider what you'd otherwise have to pay for or manage yourself. 

What About Liability Coverage?

Employment classification can also affect the protections and insurance coverage available to you while working. 

• W-2 Employees: Jackson HealthPros provides professional liability, general liability and workers' compensation coverage for eligible employees, so you have coverage through your employer while you're working.  

• 1099 Independent Contractors: Independent contractors may be responsible for obtaining their own professional liability or other applicable insurance coverage. The specific requirements can vary depending on the contract and the work being performed.  

Workers’ compensation requirements for most private-sector employees are generally governed by state law, so requirements can vary by state. If you're considering a 1099 opportunity, ask exactly what insurance coverage is included, what you would need to obtain yourself and what responsibilities are outlined in the contract. It's much easier to understand those details before you accept a position than after you start working. 

What Does This Mean for Healthcare Professionals working travel jobs? 

At the end of the day, your employment classification affects more than how you file your taxes. It can influence your paycheck, benefits, insurance coverage and how much administrative work you take on yourself. With a W-2 travel position through Jackson HealthPros, you're still working a full-time healthcare job with pay and benefits—the difference is that your job is structured around a travel contract. You can take a position in a new location, work for the length of the contract and then decide what's next, while having the support and benefits that come with W-2 employment. 

Before accepting any travel healthcare position, take time to understand the complete offer. Ask about pay, benefits, taxes, insurance, reimbursements, housing and any other expenses you'll be responsible for. Looking at the entire package will give you a much clearer picture of what the opportunity actually offers. If you have questions about W-2 employment or travel opportunities with Jackson HealthPros, reach out to our team. We can walk you through how our travel positions work and what you can expect throughout the process.