Have you ever wondered if there’s a better way to balance the flexibility of contract work with the security of a traditional job? As a medical professional, you have unique skills that are in high demand. But choosing between being an independent contractor or a permanent employee at a temp agency can be tough.
We’ll break down the pros and cons of each option. This will help you understand the financial, lifestyle, and career implications so you can make the best decision for your situation.
Ready to find a medical staffing agency that treats you like a valued team member? Partner with AHS MedStat and experience the difference.
Independent Contractor with Medical Staffing Agency
The allure of being your own boss, setting your own hours, and potentially earning more money draws many medical professionals to the independent contractor (IC) model. While it offers a degree of freedom and flexibility that traditional employment often lacks, it’s important to understand the full picture before taking the leap.
Pros of being an IC
Flexibility: This is often the biggest draw for medical professionals choosing the IC route. As an IC, you have the power to decide when and where you work. You can accept or decline assignments based on your availability, preferences, and financial goals. This flexibility allows you to strike a better work-life balance, accommodate personal commitments, or even pursue other interests alongside your medical career.
Potential for higher pay rates: Because ICs take on more financial risk and responsibility, they often command higher hourly rates than their permanent employee counterparts. This is especially true for those with specialized skills or those willing to work in high-demand locations or under challenging conditions.
Tax benefits: ICs can deduct a variety of business expenses from their taxable income, potentially reducing their overall tax burden. These deductions can include travel expenses, supplies, continuing education costs, and even a portion of their home office expenses.
Independence and autonomy: Many medical professionals thrive on the autonomy that comes with being an IC. You have more control over your work environment, the types of assignments you take, and the way you approach your tasks. This sense of ownership can be incredibly empowering and motivating.
Cons of being an IC
No benefits: One of the major trade-offs of being an IC is the lack of benefits typically offered to permanent employees. This means you’ll be responsible for securing your own health insurance, retirement savings plan, and paid time off. These costs can add up significantly and should be factored into your financial planning.
Responsibility for self-employment taxes and insurance: ICs are responsible for paying both the employer and employee portions of Social Security and Medicare taxes, known as self-employment taxes. Additionally, you’ll need to secure your own professional liability insurance to protect yourself from potential lawsuits.
Permanent Employee of a Medical Staffing Agency
The permanent employee PE model within a medical staffing agency offers a balance between flexibility and stability. It provides a safety net of benefits while including the potential for high earnings and a wide option of destinations for travel assignments.
Pros of being a PE
Benefits package: One of the most significant advantages of being a PE is the comprehensive benefits package that typically comes with the role. This usually includes health insurance, paid time off, and retirement contributions. These benefits provide a safety net and peace of mind, allowing you to focus on your work and personal well-being.
Flexibility & autonomy: Contrary to traditional notions, being a PE with a medical staffing agency can still offer considerable flexibility. You can often choose your assignments, work locations, and even negotiate your schedule to some extent. This allows you to maintain a degree of control over your work life while enjoying the benefits of permanent employment.
High pay potential: Similar to ICs, PEs with medical staffing agencies, especially those taking on travel assignments, can command competitive pay rates. The demand for skilled medical professionals, coupled with the challenges and sacrifices of travel roles, often translates to attractive compensation packages.
Cons of being a PE
Potentially lower pay rates compared to ICs on non-travel assignments: While travel assignments can be lucrative, PEs on standard assignments might earn slightly less than their IC counterparts. This is because the agency absorbs the costs of benefits and other overhead expenses associated with permanent employment.
Choosing Your Path
Deciding between being an IC or a PE with a medical staffing agency is a personal choice. There’s no one-size-fits-all answer, and what works for one person may not be ideal for another. The key is to choose the path that aligns with your personal preferences, financial goals, and career aspirations.
To make an informed decision, weigh your priorities and consider the following:
- How important is it for you to have access to health insurance and retirement contributions? Are you willing to forgo these benefits for the potential of higher earnings as an IC?
- What are your long-term career aspirations? Are you looking for opportunities for advancement and specialization within an agency, or do you prefer the freedom to move between medical staffing platforms?
- Consider the costs associated with each model. ICs need to budget for their own benefits, insurance, and business expenses, while PEs may have lower take-home pay due to payroll deductions.
- Research the cost of living and the overall job market in your desired location. These factors can influence your earning potential and the types of opportunities available.
Flexibility and Support: Your Medical Staffing Agency – AHS MedStat
At AHS MedStat, we offer the best of both worlds. As a permanent employee, you’ll enjoy the security of a comprehensive benefits package, stable income, and opportunities for career growth. But you’ll also experience the flexibility and high earning potential typically associated with independent contracting, especially with our wide range of travel assignments across the U.S.
Whether you’re drawn to the adventure of travel assignments or prefer the comfort of local placements, AHS MedStat has the opportunities to match your ambitions. Explore a variety of clinical settings, expand your skill set, and build a rewarding career with us. It’s time to experience the difference of partnering with a medical staffing agency that truly puts you first.
