What’s the real difference between being a 1099 contractor and a W2 employee? And who actually decides which one you are — your employer or state law? Financial planner Kathleen Boyd, CFP®, CSLP®, CBDA, joins us to unpack the distinctions between these classifications and what they mean for your career, finances, and legal obligations. You’ll learn the IRS guidelines that determine your status, the pros and cons of each, and how being 1099 or W-2 impacts your retirement savings, tax planning, and benefits like Social Security and Medicare. Plus, we’ll discuss unique situations like earning both W-2 and 1099 income from locum tenens work.

Key moments:

(04:43) Key differences between 1099 contractor income and W-2 employee income

(11:16) How IRS rules determine if you’re a 1099 contractor or should be classified as W-2

(17:21) The pros and cons of 1099 vs. W-2 status and how they impact your taxes, retirement, and benefits

(30:56) What happens when you earn both W-2 and 1099 income as a locum tenens worker?

Link mentioned: 

• Worker Classification 101: employee or independent contractor