What is the Difference Between a 1099 Worker and a W2 Worker in the Dental Industry?

Are you currently exploring employment options in the dental industry? With the field offering many opportunities, learning about various types of employment can sometimes be overwhelming. In the dental industry, there are generally two types of classified employees – 1099 workers and W2 workers. Here’s a quick breakdown of these two types of positions and what you should know:

What’s the Difference Between a 1099 and W2 Worker?

Nature of employment

With 1099 workers and W2 workers, there are differences between these two positions in the context of workplace and employment expectations. In the majority of circumstances, dental workers are full-time employees (classified as W2 workers). Unlike 1099 workers who are independent contractors with their own autonomy, W2 workers perform their jobs under employers who own their respective facilities and dental equipment and supplies. These employers also control various management functions, including patient scheduling, billing protocols, and hours of operation.

Tax deductions

Unlike W2 workers, an independent contractor (1099 worker) is entitled to receive yearly tax deductions. Examples of qualifying tax-deductible expenses include mileage, health insurance premiums, travel and car costs, and cell phone expenses. Other deductions may include licensing and continuing education costs.

Salary and payment terms

Depending on employment capacity, salary and payment can vary. If you’re an independent contractor, it’s important to fully understand your compensation terms with every job. Many contractor-based dental jobs will vary with payment terms, offering a base salary, daily rate, or net collection. Paying close attention to contracts will be important as you navigate new positions. On the other hand, as a permanent dental employee, you’ll be entitled to a full-time salary, health insurance, and other benefits.

As you advance your dental career, knowing the main differences between 1099 and W2 employment will help you make the best decisions for your employment.

Ready to secure your next dental position?

Contact The AGA Group, a top dental staffing firm based in Kanas City, and start exploring many of our exciting job opportunities.


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