Do PRN Nurses Get Benefits?

Oct 25, 2024

PRN (per diem, or “as needed”) nursing is growing in popularity among healthcare professionals who want more flexibility in their lives. However one of the biggest questions that nurses have is “Do PRN nurses get benefits while working PRN shifts?” The answer depends on if you’re working through a W-2 agency or as a 1099 independent contractor. Let’s break down how each type of employment affects eligibility and what to consider when choosing between the two.

W-2 Agencies and PRN Nursing Benefits

When you work for a W-2 staffing agency, you are classified as an employee of that agency. This means that the agency helps handle your taxes, and depending on how many hours you work–you may qualify for benefits.

Benefits of W-2 Agencies and PRN Nursing Benefits?

  • Health Insurance: Most W-2 agencies like Cascade Health Services, offer medical, dental, and vision.
  • Retirement plans: They may offer 401(k) options.
  • Paid Time Off: Even as a PRN nurse, you may accrue PTO if you meet the full-time hour requirement.
PRN job posting where full-time PRN nurses get benefits

1099 Agencies and PRN Nursing Benefits

On the other hand, if you work with a 1099 agency, you are classified as an independent contractor. Unlike W-2 employees, independent contractors are responsible for managing their own taxes and benefits, because the agency isn’t required to provide them.

What You Won’t Get with a 1099 Agency

  • No employer-sponsored health insurance.
  • No retirement plans like a 401(k) with matching.
  • No PTO, disability insurance, or other traditional employee benefits.

However, working as a 1099 contractor does come with some benefits. Agencies pay a higher rate upfront, but nurses are responsible for their own taxes, so it’s important to consult or hire a tax professional to help you set the correct amount aside for end-of-year taxes, including deductions. 

Still, it’s important to consider the added financial responsibility that comes with being a 1099 contractor. You’ll need to manage your own health insurance, set up a retirement plan (such as a SEP IRA or Solo 401(k)), and budget for taxes, including self-employment tax.

So, do PRN nurses get benefits?

The answer depends on the agency type. W-2 agencies can offer benefits like health insurance and retirement plans if you meet hour thresholds, providing a level of stability. In contrast, 1099 agencies don’t provide benefits or support systems, but they offer more freedom and potentially higher earnings.

When deciding between W-2 and 1099 work, it’s important to think about what matters most to you—whether that’s stability and security or flexibility and autonomy. Understanding these differences will help you choose the PRN nursing path that best suits your lifestyle and goals.

What we do

Allied Healthcare & Nurse Staffing Services

Founded in 1988, Cascade Health Services is a leading healthcare and nurse staffing agency in the United States. More than 2,500 nurses, nurse aides and allied health professionals work with Cascade across the nation. We are hiring RN, LPN, LVN, CNA, CMA, CMT and other healthcare professionals for immediate Travel, Contract and PRN jobs in Nursing Homes, Long Term Care Centers, Skilled Nursing Facilities, Assisted Living, Rehabilitation Centers and Hospitals.