By Darla Hardy, DNP, RN, Vice President Client Relations & Business Development
In today’s evolving healthcare landscape, nurses and allied health professionals are increasingly exploring flexible work options. App-based staffing platforms often promote independence, freedom, and fast placements—but many of these models classify workers as 1099 independent contractors instead of W-2 employees. While that may sound appealing on the surface, it’s critical to understand the real risks that come with 1099 status before diving in.
At Plexsum Staffing Solutions, we believe knowledge is power. If you’re considering working per diem or travel shifts through an app or unfamiliar agency, here’s what you need to know:
What Is a 1099 Contractor in Healthcare?
A 1099 contractor is considered self-employed. That means:
- You’re responsible for your own taxes (including self-employment tax)
- You don’t receive traditional employee benefits
- You’re not protected by labor laws in the same way as W-2 employees
- You may not be covered by the facility or agency’s liability or malpractice insurance
App-based platforms often list jobs quickly and with minimal onboarding, but that convenience may come at a cost to your legal protection, financial stability, and clinical safety.
Top Risks for 1099 Nurses & Allied Health Staff
1. No Benefits or Protections
As a 1099 worker, you don’t receive employer-sponsored health insurance, paid time off, unemployment insurance, or retirement benefits. You also can’t file for workers’ compensation if you’re injured on the job.
2. You Pay Double in Taxes
W-2 employees have half of their Social Security and Medicare taxes paid by their employer. As a 1099 contractor, you cover both halves—which can add up to an extra 15.3% out of pocket.
3. Malpractice and Legal Liability
If something goes wrong on a shift, 1099 workers are often held fully responsible. Unless you carry your own malpractice insurance (and read the fine print), you may be unprotected in a legal dispute.
4. Credentialing Can Be Incomplete
App-based platforms may not rigorously verify credentials, licenses, or facility compliance. That puts you at risk of working in unsafe conditions—or in violation of your license.
5. You’re on Your Own
When a shift is canceled, a facility refuses to pay, or a patient incident occurs, you may not have an advocate. There’s no recruiter, compliance team, or staffing partner to support you.
What W-2 Employment Offers Instead
At Plexsum, our clinicians are W-2 employees. That means we:
- Withhold and pay taxes on your behalf
- Provide liability and malpractice coverage
- Offer benefits for eligible employees
- Fully credential and support our staff
- Ensure compliance with state and federal labor laws
- Advocate for your schedule, pay, and work environment
Being part of a contract staffing agency like Plexsum ensures you’re never alone in your professional journey. You get the flexibility of temporary work with the protection and backing of a team who puts your safety and success first.
Final Thoughts: Know Before You Go
“1099 or not 1099?” isn’t just a tax question—it’s a career safety question. If you’re offered a role through an app or lesser-known agency, take the time to ask:
- Am I protected?
- Who carries the liability?
- What happens if something goes wrong?
It’s tempting to chase fast shifts and flashy pay—but nothing replaces the peace of mind that comes from knowing you’re covered.
At Plexsum Staffing Solutions, we’re here to elevate your career—not just fill a shift. If you’re ready for flexibility with security, let’s talk.
Want to learn more about the W-2 difference?
Contact us today and let’s build your career—the right way.
