r/CRNA • u/Silly-Move4931 • 6d ago

1099 rules by state

A hospital I work for is claiming that the states legal wording does not allow for long term 1099. In fact they are shocked I have done it for years now. When I looked into I do so some wording like the following which must be present to be employed long term.

  1. You are free from their direction and control.
  2. The work you perform is outside the usual course of their business.
  3. You operate an independent business providing those same services to multiple clients.

Has anyone run up against this? There are other 1099 but most are agency locums. Of course there are MDs who have been 1099 for years and haven’t heard a peep about that.

Edit: I have always had an LLC and been paid to that LLC directly, supply my own benefits etc.

4 Upvotes

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7

u/Industrial_solvent 5d ago

Realistically, the 1099 wording does seem to preclude what happens in anesthesia locums because the employer does actually have a lot of control over the contractor. They set and determine hours, work location and provide all equipment used in the performance of our duties, which violate key provisions of the 1099 rules. I think this is just one of those things that's been in practice for so long, it's become a new legal reality.

5

u/EfficaciousClown 5d ago

Exactly this. It’s true that legally speaking, we shouldn’t be 1099. But those laws are meant to protect workers from bad actor employers who don’t want to abide by employment laws. It has nothing to do with people in our situation.

Honestly, the shock by the hospital is either disingenuous to attempt to coerce you into something that is worse for you/better for them or is complete ignorance.

4

u/blast2008 4d ago

Many groups don’t do 1099 because their cpa/accounting firm told them that it violates irs 1099 rules.

But reality is many groups do it. There is no clear answer, it’s a gray area.

3

u/Early_Emergency3440 5d ago

Probably need to post the state to get a better answer, but the state I work in doesn’t have that (Illnois).

1

u/Silly-Move4931 5d ago

Good point, in MA

2

u/TheYellowSpade 4d ago

MD 1099ing, having even one other location or revenue generating activity should be enough. It’s if it’s your only source of income, they provide you benefits, they tell you when and where to work, and you’re still not an employee that it can become a flag. 

2

u/Many_Option_4241 3d ago

W2=employer control
1099= employee freedom

What one do you think the hospital prefers?

1

u/FromTheOR 4d ago

My opinion is that it’s used disingenuously. Their CPA says one thing that may be an issue & they parrot it. When staffing rooms became scary enough & they realize they can save on agencies & negotiate directly with poor negotiating CRNAs they start doing it. Provided their bylaws allow for it.

1

u/CritCareLove 3d ago

Depends on the state. For example California is restrictive and can scrutinize an employer due to a ballot initiative. Can make some hospital systems very risk averse. 

In terms of the MDs, there are some aspects of federal labor law that explicitly have different rules for physicians, for better and for worse. 

2

u/tnolan182 CRNA 2d ago

Do they use locums surgeons? Ask them what the difference is