The Truth About Being a 1099 Physician Assistant - What They Don't Want You to Know!

[@urch4041]

I think you are missing a lot of info on the tax benefits a 1099 can offer. Plus for the math portion of the SE tax you technically are only paying roughly 7% more (not 15.3%) over a W-2 income (cause you are paying the additional employer tax in 1099). Also in most cases this is further reduced to roughly about 5% if you take into account the fact that as a 1099 you are able to deduct the employer portion of the SE tax which as a W2 you cant.

[@LinhTran-xk9qn]

Hey Sami, thanks for talking about this. Im two years out and actively interviewing. Can you talk more about the possibility of opening up an llc and the. Writing off expenses such as cme and malpractice and how they would change the equation of the total comp package

[@samingoshow]

The process of opening an LLC is simple. You can do it yourself. But I didn’t do it myself. I hired a CPA to do everything for me when I opened my own business. A good CPA will save you tons of money and teach you how to write off expenses and how to use the tax code in your favor. You can probably learn it yourself but that would take more time and you may get in trouble with the IRS.

[@brandonanderson4407]

To add a little bit more, the mention of LLC setup was not made. If you work as a 1099 PA, you can form an S-corporation for your business. The important thing here is to pay yourself 50% or 60% of the income, which will be subject to tax. The remaining portion can be paid to yourself as dividends, which are not taxed. Consequently, when a PA establishes an S-corp, they will only be taxed on the amount they pay themselves, based on that 50 or 60%. It is recommended to set up a payroll system like ADP to handle this and ensure that taxes are withheld from your paycheck. To recap, a PA creates an LLC, then forms an S-Corp, sets up a bank account, and gets ADP. As a result, the PA becomes both an employee and a shareholder of the S-corp. This means they will be taxed at a lower rate, only on the portion of revenue passed on to them as income, while they can pay themselves the remainder as shareholder dividends, which are not taxed. Additionally, they can deduct other expenses such as insurance, cell phone, uniforms, education, and health insurance. it is highly recommended to consult with a CPA. Being a PA is advantageous because as a 1099 employee, you end up at a disadvantage without any deductions.

[@jamesblackburn2205]

You didn't touch on all the write offs you can have to lower taxes with 1099.

[@VanessaAA87]

This is such great info. I’m 4 years in now but as a new grad I would have easily been swayed by the numbers without realizing the benefit in malpractice insurance, CME

[@samingoshow]

Yuuuupp! That’s why a lot of these companies target new grads. Cheap labor! 🤦🏻‍♀️

[@26mirelka]

Sam, I love you content and this is such invaluable information!! Thank you so much for this video and breaking it down so well! I think even offering 1099 to a new grad is a red flag in general😅

[@samingoshow]

Thank you so much!! I’m glad you enjoyed the video. ❤️❤️❤️ And I agree, I think offering new grads 1099 position is tricky bc most of them don’t know anything about it

[@BryloReads]

Very informative, thank you! 🙂

[@samingoshow]

Thank you! Glad you found this content valuable

[@jacknhan7597]

I'm a new grad PA and this is very helpful. thanks for sharing!

[@samingoshow]

Of course! Thanks for watching! ❤️