New Chapter for Minnesota’s Peer Recovery Specialists: Transitioning to W2 Employment

The role of Certified Peer Recovery Specialists (CPRSs or Peers) is evolving in Minnesota. Historically, Peers operated as independent contractors under a 1099 status, enjoying the flexibility to set their own hours while providing crucial support to clients in the early stages of recovery. A significant change was made effective July 1, 2024; namely, a mandate that all new Peers be hired as a W2 (employee) in Minnesota. This ceases the longstanding approach that Peers operate independently as contractors. Consequently, all existing 1099 Peers must transition to a W2 role by January 1, 2025 to continue offering services.

Whether a Peer is transitioning from a 1099 role or just beginning their Peer career, understanding the implications of this shift is vital. This transition brings both opportunities and challenges , including more structured benefits as a W2 employee and less flexibility than a 1099 contract arrangement offers. Below, we dive into what a W2 employment means for Peers, how to navigate the transition, and what specifically the Kyros W2 Peer role entails.

What is W2 Employment?

A W2 employee is formally employed by a company or organization. A W2 employee is eligible for employment benefits like health insurance, paid time off, and unemployment. The employer withholds income taxes, Social Security, and Medicare from the employee’s paycheck, and the employee receives a W2 form to report their income and taxes withheld.

The key difference between W2 and 1099 classification lies in the tax status of the individual, rather than in their employment and hours. W2 employment offers increased benefits, job stability, coaching on best practices from the organization they are a part of, and consistent weekly hours. While W2 status offers more consistent scheduling, both full-time and part-time employment options remain available under this classification. If you have been working as a 1099 Peer, please read below for key differences between 1099 and W2 employment.

Transitioning From 1099 to W2 Status

In addition to the core difference between a 1099 contractor and a W2 employee being the tax status, 1099 contractors work independently from an employer, operating autonomously day to day, handling their own tax processing, and setting their work schedule. As independent, self-employed contractors, W2 employee benefits like paid time off do not apply.

Here are a few key areas of change:

Tax Withholding

As a W2 employee, taxes are automatically deducted f by the employer. This includes federal income tax, Social Security, and Medicare. 1099 contractors are responsible for their own tax management.

Expenses Reimbursement

As a W2 employee, you might be eligible for reimbursement for job-related expenses, which is not always the case for 1099 contractors. Scroll down to find details about job-related expenses reimbursements offered by Kyros.

Benefits

Transitioning to W2 status may grant access to benefits such as health insurance, retirement plans such as 401k, paid time off, and other employer-provided benefits not available to 1099 contractors.

While these are a few highlights, it is a non exhaustive list. Those pursuing a W2 role with Kyros should talk through any questions with their respective recruiter.

All You Need to Know About the Kyros W2 Role

This section covers critical W2 Peer role details to be aware of, including hiring process insights, comprehensive benefits, pay scales, and the expectations for both full-time and part-time positions. This information aims to provide a clear picture of the opportunities and requirements associated with these roles, helping you make an informed decision about your career in peer recovery services.

Benefits Package

Applying to a W-2 role brings significant potential benefits:

Employer contributions to health, dental, and vision coverage and administration of pre-tax health savings accounts

A 401k match of up to 4%

Fully employer-paid basic life insurance

Access to an employee assistance program and well-being resources

Generous Paid Time Off (PTO)

Monthly Car Allowance (stipend)

Employer management of taxes and withholding

Pay Range

Peer compensation is competitive and reflective of experience with Kyros:

Full-time (FT) positions: $22 – $25 per hour.

Part-time (PT) positions: $18 – $22 per hour.

Starting pay is determined by factors such as years of experience and level of certification (CPRS-R, CPRS-S, FE). The final pay is communicated during the offer.

Hours Expectations & Administrative Time

Full-time Peers are expected to work 40 hours per week, with at least 33 hours dedicated to providing peer services to qualified clients. Each week is considered 7 days; it is not limited to Monday – Friday (business days).

Part-time Peers work a minimum of 20 and a maximum of 29 hours per week, including at least 18 hours of peer services to qualified clients. Each week is considered 7 days; it is not limited to Monday – Friday (business days).

Timing

The hiring process for a W2 position includes application, interviewing and determining a start date. This can take up to 60 days. It’s important for anyone currently working as a contracted peer to consider this timeline and apply for a W2 position well before the end of the year. Kyros recommends the October timeframe at the latest considering the holidays at the end of the year.

Embracing the Future: Your Path as a W2 Certified Peer Recovery Specialist

As Minnesota embarks on a new chapter in peer recovery with the transition to W2 employment for Certified Peer Recovery Specialists, we hope this has provided valuable insights and clarity on what to expect. Whether you are transitioning from a 1099 role or considering starting anew, Kyros is committed to supporting your journey with comprehensive benefits, competitive pay, and a supportive work environment.

We invite you to explore the opportunities this change brings and join us in our mission to enhance recovery services across the state. For more details and to explore available positions, visit our career page. Here’s to new beginnings and continued success in your career as a Peer!