Independent Contractor- Is this an option for per diem jobs?

[Trismus911]

I am a new-grad, have started a full-time job at an ER where I receive in-depth training, benefits, CME hours. I am also accepting two per diem jobs on the side, both which have suggested the IC route. Anyone familiar with this and can tell me about their experience, good reference material to read, and whether or not this is a worthwhile endeavor for job(s) where I will spend approximately 32-45 hours per month? Take note that one if not both will pay signficantly more and are a significant distance from my primary job, so I can see how travel-time would be worth having as a tax-deduction.

Many thanks!

[burnpac]

There has been substantial discussion about this on the site. The short answer is no, but employers do it any way. You can review the rules regarding this here. However, the risk is all on the employer side if this is questioned. When an employee is deemed to not be an IC, it is the employer that pays the price. If you allow yourself to be treated as an IC, you need a substantially higher wage to cover your taxes, etc. There is a reason that employers want to do this, and that is the get away from paying all the employer side payroll taxes, complying with wage and hours rules, etc. They do it to save money, not to benefit you. You lose the employer's SS contribution, which can be substantial over time. If you do this, make sure to set aside estimated taxes, and to pay your taxes quarterly, as you may get into a penalty situation.

 

There is a way in which to do this legally, and that is to establish a PA or other corporation through the laws of your state, and pay yourself through the corporation (paying all the employer side payroll taxes). Your corporation then contracts with these outside entities by the hour, shift, or whatever. This is the only legal way that I know about (and according to my attorney), for PAs to be treated as and IC. I have been doing this since 2005, and it has given me a lot of freedom, control over my 401 k, and the ability shelter income. The reason the employer want to do it, is to make more money and be exempt from wage and hours rules like OT and meal breaks; not pay you more money. This doesn't constitute legal advice, and you need to consult with an attorney knowledgable with your states' corporations code if you go this route.

 

If you just want to let the employer treat you like an IC, get a substantial hourly fee.

[Guest JMPA]

Totally agree with burn above, it is a lot of hassle and benefits the employer. to make it worthwhile one usually needs to double what they would make an hour as a non independent contractor. Just because big hospitals offer IC positions does not make it legal for our profession. most states do not allow it.

[ventana]

not legally

 

the simple part of it - you have to use your own equipment, supplies, and staff and be 100% responsible for setting your own schedule in order for this to work

 

Even using their EMR would likely invalidate an IC agreement

 

 

 

no way no how

[burnpac]

not legally

 

the simple part of it - you have to use your own equipment, supplies, and staff and be 100% responsible for setting your own schedule in order for this to work

 

Even using their EMR would likely invalidate an IC agreement

 

 

 

no way no how

Agreed but with one caveat. If the EHR is a problem, it would be a problem for all physicians, most of whom have personal corporations and are by definition ICs. I thing that it is an overinterpretation of the tools and supplies rule. One way around that to be safe? Use your own laptop / iPad for access to the EHR (paid for by your corporation, of course!).

[GetMeOuttaThisMess]

Agreed but with one caveat. If the EHR is a problem, it would be a problem for all physicians, most of whom have personal corporations and are by definition ICs. I thing that it is an overinterpretation of the tools and supplies rule. One way around that to be safe? Use your own laptop / iPad for access to the EHR (paid for by your corporation, of course!).

 

I wouldn't use the iPad/laptop for any personal use since it is open to discovery should there be any concerns regarding a liability claim.  I'd also be concerned about security of the device while away from the workplace if remote access is available to any records.

[burnpac]

It can be done. At our facility, they require you to install a security app on mobile devices that they can cut off from their end. That's how they manage it at our facility. Everyone is using mobile devices now to access the electronic health record. Nothing from the EHR gets stored on a remote device. So as long as you're not logged in, there is no security risk. Also, our system automatically logs you out after an idle period.

[GetMeOuttaThisMess]

^^^  There you have it.