Self employed 1099 locums

[Tamio]

Hi all,

Wondering if anybody has any experience or further information on essentially middle cutting the locums staffing agency? I am searching for info on creating an LLC, employing myself as a Locums Urgent care PA. 

Thank you for any tips on Locums work, how to set up such a company, malpractice cost, etc. 

Also if you yourself are interested in a small partnership or know of somebody how is, lets chat.  

 

[sas5814]

I was a 1 man locums company for several years. I did it to augment my job and later as my only job. I have returned to slaving away for big brother but I'd be happy to tell you what I know. PM me if you'd like

[wable]

I joined the PA forum to ask about this very question.  I have worked EM/urgent care for the past ten years but now have the opportunity to take my first 1099 position.  I'm just wondering how the "supervising physician" part works if you're considered an independent contractor.  The physician offering me the job hasn't hired an APP before.  This will be new territory for both of us, and I'd like to make sure I don't lose my license!

Thoughts and suggestions would be appreciated.

[sas5814]

It has nothing to do with your license and supervision. It has everything to do with whether or not you meet the criteria which we really don't. Look up "IRS 20 rules". It describes what the IRS considers the criteria to be an IC. You will likely see we can't meet the criteria. That said the risk for such an arrangement is primarily with the employer and not the employee/IC.

[wable]

Yea, I see what you mean. The "IRS 20 rules" do make it pretty clear.  There are so many IC jobs listed for PAs on job search websites though.  What are your thoughts on why that is?

 

[BirdDogPA]

4 hours ago, sas5814 said:

It has nothing to do with your license and supervision. It has everything to do with whether or not you meet the criteria which we really don't. Look up "IRS 20 rules". It describes what the IRS considers the criteria to be an IC. You will likely see we can't meet the criteria. That said the risk for such an arrangement is primarily with the employer and not the employee/IC.

Could you provide a link to where this info is. I have not been able to locate anything clear cut on the IRS website.

[rev ronin]

1 hour ago, BirdDogPA said:

Could you provide a link to where this info is. I have not been able to locate anything clear cut on the IRS website.

https://www.walthall.com/wp-content/uploads/2014/09/IRS-Indep-Contr-20-Point-Checklist.pdf

[Cideous]

We can easily be IC's, it just depends on the job you are working.  If you go from clinic to clinic and company to company with no set schedule or promised hours then you will be fine.  90% of staffing agencies pay 1099.  If you go to the same place, have an employment agreement, set hours per week etc then yea, it's a no go.  Your relationship with your supervising doc has nothing to do with how you get paid.  Having said that, I am utterly shocked by the number of PA's that do locum work and do not have their supervising doc secured ahead of time.  DO NOT RELY ON THE STAFFING AGENCY TO DO IT FOR YOU.  Don't see a patient until your supervision arrangement is secured and you verify it.

[ventana]

from medscape 

 

https://www.medscape.com/viewarticle/913093?nlid=129931_381&src=WNL_mdplsnews_190524_mscpedit_wir&uac=89496AJ&spon=17&impID=1974030&faf=1

Question

Can I Use an Independent Contractor?

A physician wrote, "I want a nurse practitioner or physician to cover one 8-hour slot per week in my urgent care office. I want this person to be an independent contractor. Am I on solid ground legally?"

Response from Carolyn Buppert, MSN, JD  Healthcare attorney

 

Probably not. The IRS, when determining whether an arrangement is one of employer/employee or independent contracting, looks at the degree of control that you (the boss) have and the independence that the hired individual has. The general question to answer is: Who controls the work? If you are telling the independent contractor when to work and where to work, that leans toward employment. An independent contractor generally works when he/she wants, where he/she wants, completes a specific project, and serves other clients. An independent contractor usually is paid a flat fee for a project and has the possibility of incurring a profit or a loss on a project.

The consequences of an erroneous choice could mean that the IRS and/or state taxing authorities could require you to pay taxes and fines. If the IRS or a state taxation office does an audit and finds that you are calling someone an independent contractor when that person, by the agency's definition, is an employee, the agency may assess civil penalties against you. They may require you personally to pay the employee's share of payroll taxes. They may assess fraud penalties. Criminal charges may even be filed. "Everyone does this" is not going to be a good defense.

For a detailed discussion of the differences between independent contractor and employee, see the IRS resource, Independent Contractor (Self-Employed) or Employee?

It's important to understand that tax liability and penalties for misclassifying an independent contractor fall on the employer. The clinician in this scenario isn't expected to recognize the appropriate classification, but you, the hiring individual, are.

 

[narcan]

Does anyone have any experience with getting an employer or agency to convert you from a W2 employee to a 1099 employee, so you can take advantage of some of the tax benefits of self-employment? 

It's a bit confusing that if you're 1099, you can deduct a large number of expenses but as a W2 you cannot, it seems.