5 Educator and Clinician Benefits of Being a W-2 Employee Rather than a Contractor

Many who work in education or healthcare have either worked as a contractor or know someone who has. Contracting is common in both fields, but it often lacks some valuable benefits for educators and clinicians. When you work as a contractor, essential benefits like healthcare, paid leave, and even workplace tech may not be covered. 

New graduates may be tempted to take a contractor role, but that could cause them to miss out on benefits W-2 employees enjoy in roles like physical therapy or speech-language pathology. Here are some differences between contractors and employees.

Contractor vs. Permanent Employee Distinction

First, consider the difference between contractor (1099) and permanent (W-2) employees. There are a few significant areas in which these roles differ, including the educator and clinician benefits available. Both employment types can be found in education and healthcare, sometimes within the same role in the same organization.

Contractor Role (1099)

The contractor files taxes using a 1099 form and is fully responsible for filing and paying all local, state, and federal taxes on their own. While working as a contractor may have benefits for roles like speech-language pathologists, physical therapists, and school psychologists, it can also be burdensome. Contractors are responsible for purchasing their tools and technology. They must also plan for taxes, as their employer won’t deduct them from each paycheck. That means contractors must estimate how much they will owe in taxes each year and carefully put those funds aside to fulfill their share at tax time. Failing to plan for taxes can result in a large, unexpected bill from the IRS. 

Employee Role (W2)

Employees file their taxes using a W-2 form. They can work full-time, part-time, or even temporarily. Employees are managed by a supervisor, and their employer has the right to dictate their working hours and schedules. Salaries are often paid monthly or bimonthly, and employers withhold the appropriate taxes for their employees each paycheck. 

Top Educator and Clinician Benefits as a W-2 Employee

Clinicians like speech-language pathologists, school psychologists, behavioral analysts, and physical therapists often enjoy these benefits when they move to an employee role. Some of the most significant benefits for educators and clinicians include: 

1. Paid time off

One of the most prominent benefits educators and clinicians enjoy as employees is paid time off. They receive sick days to keep their income steady while not at work. By comparison, contractors are only paid for the time they work.

2. Healthcare coverage

Another great benefit of being an employee is the healthcare coverage. The healthcare coverage available through an employer may come at a group rate discount.

Personal insurance coverage can be very expensive if you need it independently.

3. Tax Withholding

Employees don’t have to worry about a large tax bill from the IRS at the end of the tax year, as their employer will deduct the necessary funds throughout the year. 

Taxes are not automatically deducted for contractors, which can result in a surprisingly large tax burden in April when taxes are due in the United States.

4. Overtime

Unless exempt, W-2 employees must also be paid an increased overtime rate for working more than 40 hours per week. Contractors typically don’t have this protection unless it’s included in their contract.

5. Tool, training, and technology support

As an employee, professionals like school psychologists or speech-language pathologists often benefit from access to tools, technology, and training from their employers. Permanent employees may also be eligible for compensation of personal funds used for work items. 

Find Your Next Role with Nyman Associates

Nyman Associates is a leading staffing agency for educators and clinicians in Greater Philadelphia and Southern NJ. Every role with Nyman Associates is a W-2 employee; every educator and clinician enjoys the benefits.

At Nyman Associates, we often encounter job seekers looking to transition to W-2 employee status. We work closely with speech-language pathologists, school psychologists, physical therapists, and behavior analysts to find only the roles that fit their needs, matching their ideal employment type, location, benefits, and compensation. In some cases, we can advocate for access to funding for the tools and technology to help them succeed in their role. 

If you’re looking for a change in the Greater Philadelphia area, get in touch with our expert team to get started today!