What Dietitians Need to Know About 1099 Contractor Jobs

If you’re like a lot of my clients, you’re considering a remote position and you’ve come across a lot of posts (including the ones that I share) for a contractor, consultant, or 1099 dietitian position.

While the hourly pay rate for these positions is typically higher than a salaried role, there are several things you should know before you accept a contractor position.

In this article, we will outline everything dietitians need to know about 1099 contractor jobs. We’ll discuss the pros and cons of these positions and the steps you should take to ensure that you’re receiving fair pay.

 But before we get started, we need to cover terminology and clarify the difference between a consultant, contractor and 1099 role.

What is the difference between a consultant, contractor, and a 1099 position?

If you’re looking for dietitian jobs, you have likely seen the terms “consultant”, “contractor” and “1099 role”.

In most circumstances, these terms are often referring to the same thing. A contracted dietitian typically works for a company under a contract instead of working directly as an employee.

What is a consultant?

However, the term consultant is a little bit more nuanced and often gets misused. Technically, a consultant is a professional with extensive experience and broad expertise within a specific industry. Most often consultants are problem-solvers who evaluate their clients’ needs and provide advice and guidance on a strategy. They often develop a plan and determine who will implement the action steps of the plan. A consultant typically isn’t doing the day-to-day work.

What is a contractor?

On the converse, a contractor typically implements the day-to-day work such as seeing clients, and patients or conducting a wellness fair. However, in the dietetics profession, the terms contractor and consultant are often used interchangeably. Many long-term care facilities hire “consultant dietitians”. These dietitians are certainly nutrition experts, but they’re also doing the hands-on day-to-day work. For all practical purposes, the title doesn’t matter because both are contract positions.

What is a “1099”?

This is where the term “1099 role” comes in. When you work as a contracted professional, you won’t receive a W-2 paycheck like a typical employee. Instead, you will be paid under 1099 status. Employers like this option because they don’t have to pay their portion of taxes, nor do they have to provide benefits. But we’ll cover more on that later.

 The important thing to know here is that consultant, contractor, and 1099 are also used interchangeably in the nutrition and dietetics world.

 Now that we have clarified title names, let’s dive into everything you should know before you accept a contractor position as a dietitian.

Understanding the tax implications with a 1099 role.

We alluded to this above, but this is HUGE. As a 1099 contractor, you are considered self-employed, and taxes are not withheld from your pay. You will be responsible for paying both the employer and employee portions of Social Security and Medicare taxes, as well as income tax.

Most experts recommend setting aside 20-30% of your income for self-employment taxes!

If you have never been paid in a 1099 position before, you will likely be SHOCKED when it comes to tax time. You’re going to feel “rich” until it comes to taxes.

It is really important to fully understand this and have a good system in place. Ideally, you’ll pay taxes quarterly, but that goes beyond the scope of today’s conversation.

Fellow dietitian, Holly Larson has a great article on this that you can check out here.

You must plan ahead to account for self-employment taxes.

I cannot emphasize this enough. You need to understand that you will absolutely still pay taxes on a 1099 role and you must plan for this in advance. You should plan on setting aside 30% of your pay to cover these expenses. Some people run into trouble because they have spent this money before tax time rolls around.

This is one reason why contractor roles pay more (or should pay more). As we’ll cover later, this isn’t always the case and this is problematic.

As always, I recommend consulting with a tax professional for specific advice on your scenario.  

A contractor role does not provide benefits.

As a 1099 contract worker, you won’t be eligible for any company benefits including paid time off, health insurance, and a 401k match. Company benefits usually account for 25-35% of your total financial package (it’s a lot!).

Make sure you fully understand the cost of health insurance (if paying on your own) and the implications of not having a 401k retirement account.

How can you get health insurance as a dietitian contractor?

One of the questions that many dietitians have when they are contemplating a non-benefited position is how to get health insurance. I recommend checking out the healthcare exchange, where you can purchase marketplace health insurance. You can enter all of your information and get premium quotes with no obligation. This will help you understand the cost of unsubsidized healthcare and this cost can vary widely from $200-1000+/month.

Remember, as a traditional employee, your employer is usually subsidizing part of your healthcare premium. Purchasing your own health insurance will likely be more expensive than you realize and it’s worth investigating. However, this doesn’t have to be a deal breaker. Depending on your household income, you may also qualify for state-subsidized health insurance premiums.

Don’t forget to account for other benefits.

Apart from health insurance, you’ll also miss out on 401k options, contributions and matches as well as benefits such as vacation time and paid time off. 

This may sound fine until you realize that you won’t have any income while you’re on vacation or when you aren’t able to work during holidays.

You will need to purchase your own liability insurance.

As a contractor or 1099 worker, you will not be covered under the company’s liability policy. Typically when you’re an employee at a hospital or a facility, they have liability insurance that covers employees should there ever be a legal or malpractice issue.

However, when you are self-employed, you will need your own liability insurance. This typically costs $250+/year depending on your scope of work.

You may also want to consider starting your own LLC to separate your personal finances and assets from your business work. This adds an extra layer of protection should there be a legal issue.

While we won’t cover liability and LLC creation in detail, these are things to consider and budget for.

Contractors are often responsible for business and equipment expenses.

As an independent contractor, you will likely be responsible for covering your own business expenses, such as liability insurance, continuing education, and any necessary licenses or certifications.

The company may be willing to pay for state licensure (they should if it’s required).

As a 1099 employee, you’ll likely have to use your own laptop, webcam, printer, etc. Sometimes companies will reimburse you for internet and software, but not always. Make sure to factor in these expenses.  

Writing off expenses can help your tax burden.

You may have heard that you can write off these types of expenses. This may be the case in your situation, but you should consult with a certified personal accountant for state-specific regulations. You’ll need to follow very specific guidelines and you also must keep very detailed records including saving all of your receipts.

Understanding contracts for 1099 dietitian jobs.

Before accepting a 1099 position, carefully review and understand the terms of any contracts you may be asked to sign. Consider consulting with a legal professional to ensure that the terms are fair and protect your interests.

 I have seen several posts in social media groups where dietitians have not fully read their contracts and they have agreed to something they don’t understand.

Some common things to watch out for are:

•  A non-compete clause- these often prohibit you from working for a competitor and can even exclude you from working for your own business. This may also include a non-solicit clause, meaning that you cannot take clients from the business even after you quit. Note that non-compete clauses are not legal in every state.

• Termination grounds- typically with a contract, they will have right to terminate you and your contract at any time.

• Payment- it’s not uncommon for these roles to pay once a month, which can be hard when you’re waiting for your first paycheck. Sometimes the first payment won’t come until 6 weeks later.

Read your contract in full and if you have any questions, reach out to legal counsel.

Work can be inconsistent with contractor roles.

If you’re considering a part-time or full-time contract dietitian role, confirm if you are guaranteed a set number of hours.

For example, if you’re signing on for a counseling or private practice position, there may be fluctuations in the client load. During slower times of the year (like the holidays and summer), you might not get a full schedule of clients.

In a true contractor role, the company cannot dictate when you work. You should maintain autonomy over your hours and your schedule. This is one thing that often gets overlooked. If your boss is requiring that you hold set hours or attend regular meetings, then legally they might have to pay you as a part-time employee instead.

Some companies try to skirt labor laws by incorrectly classifying positions as contractor roles, when they are in-fact part-time employee roles. Some states like California have very specific laws surrounding this. You can learn more here.

New laws related to 1099 employees have gone into effect.

In fact, in early 2024, congress passed new laws that further specify when an employee can classify someone as a 1099 and when they are technically an employee. You can learn more here.

While you can bring this information to your company, keep in mind that there are pros and cons to work as a contractor and you may want to weigh these first!

Working as a consultant dietitian offers flexibility!

As a contract employee, you get to set your schedule and determine when and how you do your work based on the outlined contract. This offers you a tremendous amount of flexibility to take on roles based on your schedule and desire to work.

This is one of the best perks of a contract role. You can work around your personal and family obligations and aren’t tied down to specific work hours. Even in the case of a counseling position, you should be in charge of setting your hours and availability.

Check out our blog post about freelance work to learn more about some of the perks of this line of work.

Let’s talk about pay as a 1099 or contract RD.

One of the main draws to contract work is the higher pay. Because contract positions don’t include benefits AND you must pay higher self-employment taxes, the pay is typically higher.

As a contractor or freelance worker, you may have the opportunity to set your rates. This is typically true in the case of freelance positions where you are acting as a subject matter expert.

However, this isn’t always the case, especially with companies that are hiring for counseling roles. This includes companies like Fay, Everlong, and more. These positions often have a set range with limited room for negotiation. (Many of my clients have tried to negotiate with no success).

How much should a contract role pay?

In general, experts recommend that a 1099 contractor role should pay 1.5-2x more than a typical salaried position. This accounts for the lack of benefits, the taxes you’ll pay, and the lack of guaranteed hours.

Let’s run through some examples:  

Scenario A:

You can take a set wage and determine what the equivalent pay would be if it were a salaried role.

If a contract position is offering $30/hr, this is equivalent to roughly $20/hr for a regular salaried position.  ($20/hr x 1.5= $30/hr).

Scenario B:  

Alternatively, you might also take your desired hourly range for a salaried position and determine your self-employed rate by multiplying it by 1.5-2.

If the typical market rate for your position is $45/hr, then the contracted rate should be between $68-90/hr. ($45/hr x 1.5-2 = $68-90/hr).

Most companies are hoping that you don’t do this math.

When you start to play with numbers, you may start to realize that many companies are offering subpar pay. Unfortunately, dietitians are still accepting this lower pay, especially for remote roles so companies have little incentive to negotiate.

Many of the virtual, contract counseling positions are offering $40-60/hr. Now you have the tools to decide if this will be the right option for you.

There are also calculators out there that can help you understand the pay implications of a 1099 role.

Conclusion

While a 1099 contractor role typically offers a lot more flexibility and has the potential to pay more, make sure that you fully understand the pros and cons before you accept a role.

In general, experts recommend that a 1099 contractor role should pay 1.5-2x more than a typical salaried position. This accounts for the lack of benefits, the taxes you’ll pay, and the lack of guaranteed hours.

There are many pros and cons to working a 1099 role. It often allows for great schedule flexibility and it allows you to work a variety of roles if desired. Many dietitians love consultant work because their earning potential is higher- that is of course, as long as you have accounted for taxes and the lack of benefits.

About the Author

Kelan Sarnoff, MS, RD is a Registered Dietitian with over 10 years of experience in the nutrition realm. She has experience in hiring and recruitment in both the clinical and academic settings. Kelan is passionate about helping dietitians land a job that aligns with their passion, values, and skills. She also believes in raising the pay for all dietitians and empowering dietitians to negotiate for desired compensation.