1099 and locums

[sandy]

Dear all

I have been thinking of starting as a locum and in talks with a group.
I am not sure how to plan the contract in terms of the income or compensation on 1099. how do i calculate the compnesation on 1099. I am a w-2 now and not sure how to calculate taxes and other deductions based on future 1099 income . I will be leaving the w-2 job altogether and will be joining the 1099 job.
any links or literature or education/personal experiences will be greatly appreciated.

Thanks

[Bmac]

Here’s some light reading to get you started. In brief, you benefit from the ability to deduct business expenses while having to pay self-employment taxes and make estimated tax payments roughly quarterly.
https://www.irs.gov/pub/irs-pdf/p334.pdf

[sandy]

Here’s some light reading to get you started. In brief, you benefit from the ability to deduct business expenses while having to pay self-employment taxes and make estimated tax payments roughly quarterly.
https://www.irs.gov/pub/irs-pdf/p334.pdf

Thanks. is there a way I can look how much should i ask for compensation in 1099 based on my w-2 income?

[Bmac]

I'm not sure I completely understand your question, but if you are hoping to be paid about the same amount, in order to make a semi-apples-to-apples comparison, I think you would need to take into account all the fringe benefits that you have with your W2 job that you would not likely have as a 1099 contractor. For example, medical/dental insurance, group life/disability insurance, 401k or other retirement plan employer match or other contributions, HSA contributions.These are all items that you may be receiving from your current W2 employer that you will probably not be receiving as a contractor and thus would need to fund for yourself.

[childay]

W2 vs Self-Employed | White Coat Investor