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Physician Contract Glossary · Contract Structure

Independent Contractor Agreement (1099)

An independent contractor agreement makes you a 1099 contractor, not an employee, so you carry your own taxes, benefits, and often malpractice.

Under a 1099 arrangement you are not an employee. You provide services under contract, the practice does not withhold taxes, and you are responsible for self-employment tax, your own benefits, and frequently your own malpractice coverage. Gross pay is usually higher than a W-2 equivalent to offset those costs, but higher gross is not higher net until you run the numbers.

WHAT TO WATCH FOR

Calculate the real difference after self-employment tax, benefits you must buy, and malpractice you must carry. Also confirm the classification is legitimate, because misclassified contractors create tax and liability problems that land on you.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

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