Money Meets Medicine 1099 vs W2 for Physicians: How to Compare Offers, Taxes, Benefits, and Real Take-Home Pay
Nov 12, 2025
The discussion dives into the financial nuances of being a 1099 independent contractor versus a W-2 employee for physicians. Tax implications and employer benefits take center stage, with insights on how specialty and location impact malpractice costs. The hosts break down the added complexity of self-employment, including bookkeeping and tax responsibilities. A practical rule emerges: 1099 offers should typically be 20–30% higher than W-2 salaries to balance out the benefits. Personality preferences on work style also play a key role in the decision-making process.
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Personal Surgery Reinforced Disability Risk
- Jimmy Turner shared his recent extensive shoulder surgery and recovery that sidelined him for six weeks.
- That experience reinforced his message about the necessity of disability insurance during training.
Price 1099 About 20–30% Higher
- When comparing 1099 vs W-2, include employer payroll taxes, benefits, and malpractice to make an apples-to-apples comparison.
- Aim for a 20–30% higher 1099 offer to offset added taxes and lost employer contributions.
Employer Taxes Add Material Burden
- 1099 payers must cover both employer and employee payroll taxes, roughly an extra 7.65% on top of employee-side contributions.
- That employer-side tax bite can be a meaningful six-figure-dollar effect over time for high earners.