I have the opportunity to choose between a 1099 and W2. No benefits but everything else about the job seems to works like an employment (get on their insurance panels, use their EMR, billing goes through them, full time work 9-5 and M-F, regular set hours by company, guaranteed base salary, and production bonus, etc). I intentionally chose this group over many others for multiple reasons, knowing I would have to pay for health insurance, malpractice, and so on.
Question is this: is it safe to do a 1099 in this arrangement? I already have an LLC and may consider an S-corp if required. I also have a side gig elsewhere getting a 1099 doing locums for the last couple years, and will get my own malpractice (I already have my own disability and life insurance), and may consider setting up my own solo 401k.
My understanding is 2 issues MAY arise:
1. anti-kick back statute - under 1099 independent contracts, you cannot give a % production of collections as it violates the law? But under W2 employment it allows for that because of the safe-harbor?
2. IRS audits - possible concerns for tax audits and fines with 1099 if job looks more like an employment?
Appreciate any advice and input!
Question is this: is it safe to do a 1099 in this arrangement? I already have an LLC and may consider an S-corp if required. I also have a side gig elsewhere getting a 1099 doing locums for the last couple years, and will get my own malpractice (I already have my own disability and life insurance), and may consider setting up my own solo 401k.
My understanding is 2 issues MAY arise:
1. anti-kick back statute - under 1099 independent contracts, you cannot give a % production of collections as it violates the law? But under W2 employment it allows for that because of the safe-harbor?
2. IRS audits - possible concerns for tax audits and fines with 1099 if job looks more like an employment?
Appreciate any advice and input!
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