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Whatever you call yourself, if you are self-employed, an independent contractor, or a sole proprietor, a partner in a partnership, or an LLC member, you must pay self-employment taxes (Social Security and Medicare). Since you are not an employee, no Social Security/Medicare taxes are withheld from your wages.
Because you are an independent contractor, PRN ON Demand will not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain workers' compensation insurance on your behalf.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed.
Pro Re Natathe Latin phrase meaning as necessary that's more commonly known in medical circles simply as PRN can strike fear into the heart of an RT looking for a full time position. New grads, especially, don't even want to think about accepting a job that's not permanent and doesn't offer benefits.
Nurse contractors and other clinicians who pick up PRN jobs are considered self-employed and receive 1099-MISC tax forms at the beginning of the year not W-2s.
PRN is an acronym for the Latin term pro re nata, which means as the situation demands, or simply, as needed. PRN nurses are fully licensed professionals who want to work on-call instead of as a full-time employee.
Independent contractors provide goods or services according to the terms of a contract they have negotiated with an employer. Independent contractors are not employees, and therefore they are not covered under most federal employment statutes.
If you are an independent contractor, then you are self-employed. The earnings of a person who is working as an independent contractor are subject to self-employment tax. To find out what your tax obligations are, visit the Self-Employed Individuals Tax Center.
The law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.