WHAT EVERY DENTAL OFFICE NEEDS TO KNOW:
The Hard Cold Facts:
Employees vs. ‘Contract Laborers’ (1099s)
If you are using sub-contracted employees (1099s), you are putting your entire dental practice at risk. The question is not IF you get caught, but WHEN you get caught. The state and federal government agencies are cracking down on businesses that are not playing by the rules. The bottom line is that it is not worth the risk, fines, and penalties associated with not conforming to the law.
AOC’s KEY POINTS TO REMEMBER:
• If your practice gets caught using 1099s (vs. employees), the penalties are severe.
• With AOC, our fee is a complete fee. There are no hidden costs. Each individual sent to you is an employee of AOC.
• An unemployment insurance policy and a workers’ compensation policy are carried on all individuals.
• Be sure that you know the differences concerning 1099s vs. employees.
A Crackdown on Cheating Companies
President Obama has allocated $25 million to the Department of Labor to combat employee misclassification, mostly by hiring additional investigators. Meanwhile, the IRS is expanding company audits, and states from Nebraska to Maine are announcing initiatives to find—and fine—companies that aren’t playing fair. READ THE FULL ARTICLE HERE
— Rebecca Webber/ PARADE MAGAZINE
Playing the independent contractor game – not!
It all starts innocently enough. You are looking to add an associate, hygienist, or dental assistant but don’t want to hire until you become convinced they are going to “work out.” So, you set the individual up as an independent contractor to avoid (you think) the taxes, paperwork, labor laws, and other challenges associated with this person being an employee.
Sounds simple enough in theory — not so, though, in real life. Like it or not, governments ideally want all workers to be employees. Why? That’s easy — more taxes. As such, the criteria for determining employee vs. independent contractor status are stacked in favor of workers being employees.
Bottom line: the overwhelming majority (in excess of 95%) of dental office employees do not meet the criteria to qualify as independent contractors. We find throughout dentistry that misunderstandings and misinformation abound on this matter. Using the information below will help you better understand and more successfully navigate the inherent risks.
Here is a good rule to follow: If the practice/business controls not only the results to be achieved, but also the means used in achieving the result, an employer/employee relationship exists, rather than an independent contractor relationship.
The relevant issues used to specifically determine an individual’s status are: behavioral control, financial control, and the relationship of the parties…. READ THE FULL ARTICLE HERE