Locum Tenens Independent Contractor Guide: Taxes, 1099 Status, and More 

Filing locum taxes

Are locum tenens independent contractors? Yes, they are. While many individuals only need to manage a W-2 form, locum tenens physicians and advanced practitioners often need to navigate the intricacies of filing a 1099 form with each agency they have worked with in the past year since locum tenens are independent contractors. By following these steps, you can simplify the independent contractor tax process.

Plan ahead.

As a locum tenens independent contractor, you may be responsible for paying federal, state, and self-employment taxes. Unlike traditional employees, these taxes are not automatically deducted from your income throughout the year. Therefore, it is advisable to set aside a percentage of your income to cover these taxes by the filing deadline in April. This approach will help you avoid any last-minute financial stress.

In addition to setting aside a portion of your income, submitting quarterly estimates to the IRS may help minimize your year-end payment. The IRS provides guidelines on how to calculate and submit these payments, ensuring that you stay on track with your tax obligations. You can also estimate tax payments and spread them out over the course of a year, making payments more manageable. Consult with a tax advisor to determine how much you might save, and to learn about payment due dates.

Save your receipts.

As a locum tenens contractor, you have the advantage of writing off most of your travel and work-related expenses. Keeping detailed records of your expenses is crucial for maximizing deductions and reducing taxable income.

Examples of deductible expenses may include:

  • Housing, travel, and meals not covered by your agency.
  • Continuing education and licenses.
  • Scrubs and white coats.
  • Work-related equipment.

Throughout the year, it is essential to save any receipts for necessary work expenses. Organizing your receipts and maintaining a record of your expenses will make filing taxes a much smoother process. There are various apps and tools available to help track and categorize your expenses, making it easier to stay organized.

Find a trustworthy accountant.

Having a trustworthy accountant who understands the intricacies of 1099 filings may provide peace of mind and allow you to focus on work. It’s important to establish a good working relationship with your accountant and communicate with them regularly to stay informed about any changes in tax laws or regulations.

Remember to save.

Planning for retirement is vital, especially for self-employed individuals like 1099 locum tenens clinicians. One of the most effective ways to save for retirement is by choosing an Individual Retirement Account (IRA) or a Simplified Employee Pension (SEP) account. These accounts offer tax advantages and can help you build a secure financial future.

Additional tips for locum tenens physicians.

While the steps outlined above cover the basics of tax preparation for locums clinicians, there are a few additional tips that can help navigate the process.

Stay informed.

Tax laws and regulations tend to change frequently, so it’s important to stay up to date on the latest tax laws impacting 1099 contractors. Subscribe to newsletters, follow reputable tax blogs, and consult with your accountant regularly to stay informed.

Seek professional advice.

If you have any questions or concerns about your tax situation, seek professional advice. A qualified tax professional can provide personalized guidance and help you make informed decisions about your finances.

This article provides general information related to locum tenens. It is not intended as legal or tax advice. Please consult with a professional tax advisor or accountant to receive advice specific to your circumstances.

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Federal facts for you.

We are a Federal Supply Schedule Contract holder. 

Federal Supply Schedule (FSS) Contract: 36F79723D0086, Professional and Allied Healthcare Staffing, effective March 15, 2023, through March 14, 2028.

NAICS Codes:
  • 561320: Temporary help services. 
  • 621111: Offices of physicians. 
  • 621112: Offices of physicians, mental health specialists. 
  • 621399: Offices of all other miscellaneous health practitioners. 
  • 621330: Offices of mental health practitioners.

Privileging.

Once you and our client agree to move forward with your assignment, our privileging team will assist you and the client in gathering information required by the healthcare facility to grant clinical privileges.

1

We contact the facility’s Medical Service Office (MSO) for their application and requirements.

2

We will assist you by pre-populating the facility’s application and sending to the MSO.

3

We will assist the MSO by following up on requested items.

4

MSO will grant privileges based on your training and experience, and you will be able to start your assignment.

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Maggie Youmans

Senior Vice President, Sales

As Senior Vice President, Maggie oversees several key specialty divisions and adjacent teams. With a demonstrated history of leading teams and developing individuals across the organization, she is dedicated to inspiring, challenging and empowering associates to achieve their personal and professional goals. 

Maggie earned degrees in marketing and management focused on consumer economics from the University of Georgia, Terry College of Business. She enjoys traveling with her husband to visit different bed and breakfasts. Together, they have been able to see the beauty within their own backyard and across the country.

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Anne Anderson

Executive Vice President

"I'm passionate about the locum tenens industry - we make a real difference in the lives of both our heroic healthcare providers and the patients they treat."

Anne has been at the forefront of the evolution of locum tenens for more than 35 years. She’s a respected leader with expertise in corporate operations, risk management, credentialing, and travel services. Before joining Jackson and Coker, she served as Executive Vice President at Medical Doctor Associates, part of Cross Country Healthcare. 

An ardent industry advocate, Anne served several years on the Board of the National Association of Locum Tenens Organizations (NALTO), including two years as president. 

Anne received a bachelor’s degree in business administration from Spring Hill College. She is also a PADI open water diver and enjoys scuba diving. 

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