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Independent contractor questions


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Hello! I am currently working in my first job out of school in the ED with a big organization, with whom I don't have to figure out insurance, disability, salary, taxes, retirement, etc. I am in discussions with a women's clinic that would be an ideal environment to work in, but I am not sure how to project what salary I would need with the way the SP wants to pay me. She has other "independent contractors" (i.e. Chiropractor) in the office who take home 40% of what they bring into the overall practice/office. She offers no benefits, but does offer malpractice insurance. She wants to do the same with me. She has never worked with or hired a PA. She will be meeting with her business advisor to put together a business plan to see what I would have to bring in to make a certain salary. However, I am assuming there are many items I need to consider above a straight salary - such as paying taxes, and ? (I don't even know what else!) 

 

Can anyone please direct me with resources to start with?

 

Can I be hired on legally as an independent contractor?

 

What questions or specifics should I have SP address with her business advisor while drawing up a plan for me?

 

Should I assume to make x amount more than average salary for PA assuming taxes/disability/???  If so, what should I expect to need to make on top of "salary?"

 

Any help or advice is greatly appreciated!

 

Thank you!

 

 

 

 

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If you don't have absolute control of your work days/hours you don't meet IRS qualifications to be an IC. Employment taxes become 15.3% but half can be deducted at tax time. You're also required to pay estimated taxes through the year. I think this is all moot because you most likely don't qualify though the employer may try to tell you otherwise.

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Look up the IRS 20 test for independent contractors. It will give you good guidance. It is highly unlikely you will meet the standard. Your potential employer is setting themselves up for an IRS audit, taxes and penalties if they try. I have a horror story I could tell you.

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ahh no

 

for a couple reasons

 

40% of collections IS THE EMPLOYEE RATE

 

if you are doing 1099 it is more like 60-80% as you have to cover all expenses of employment

 

this doc sounds VERY SHADY in the hiring of a PA and I would likely avoid unless you incorporate and have all the payroll, med mal, worker comp and everything else you need

 

 

think about it - you get exposed to body fluids  hiv, hep c - as a 1099 you have no workers comp unless you carry it...

 

if you are full time in her office, her staff scheduling and answering phones, her billing company collecting, you are an employee. period.....

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