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How are hiring companies getting away with trend towards IC versus employee status SM

Posted By: woutwork on 2009-06-06
In Reply to:

after the lawsuit that determined that IC was indeed an employee because she was told when to work, what days of the week.  The company got into trouble with employment laws because of this a few years back, yet I see most of the job postings on this and other sites are mostly IC.

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IC versus Employee status?

I am just curious which you prefer, and why?  I have never been an IC before and have just accepted an IC position and am a little nervous about it.  I like some aspects of it, but some things have me a little concerned.  I would just like to get a feel for what you think.


Please respone IC versus Employee Status

Can the person who posted the site www.EFTPS.gov please reply to this...

My husband and I are "discussing" the ad/disadv between the two.  I know you said IC all the way.  Can you please tell me why IC is better? I would be gratefully honored!


You're probably doing nothing wrong, employee status seems to be the norm with IC status primaril
SE status instead of IC? For me,SE status is heaven -with part of taxes paid and flexibility in my schedule. Have you ever applied to MDI-MD? They only accept qualified, experienced MTs and stress quality in their transcription. From what I read of your qualifications, it sure would be worth contacting them.

Per "see mssgs" comment regarding age discrimination later on in this discussion, I'm 64 - no problem getting hired at a line rate higher than average. Age is not a factor with MDI-MD - knowledge and quality is !!!
When hiring editors (or MTs), I do not consider CMT status...sm
I do not give CMTs preference simply because of their certification. I require the same testing process for each applicant. Many applicants who are not certified score well above applicants who are. I am not certified by choice and have never held a position where certification would have affected my paycheck. I'm neither for or against it; I'm completely neutral. If a Transcriptionist wishes to obtain certification for his/her personal satisfaction, then I'm all for it, but professionally speaking, from my perspective, it is irrelevant.
IC Versus SE Status Regarding pay rate

If you are an IC and you make 8 cpl, after deducting 7.5% self-employment tax you are making 7.4 cpl.  Then, if you are an SE and make 8 cpl and they pay half of taxes (7.5%) are you really making 8.6 cpl?  CONFUSED!!

Who has gone from IC status to employee status? sm

I'm sure this has been asked a million times, but I am an IC and I am thinking of going to employee status to get benefits.  My husband will be self-employed in 2 weeks and we will have no insurance or anything.  I love the freedom of being an IC but need bennies.  We have no kids but probably will in a year or two.  Would like to know who has done the switch and if you regret it.


Are you asking about IC status or employee status? sm
As an IC, I must have a contract before I will work.  However, never heard of employee status signing a contract. 
I am employee status...nm
Not IC-employee status
What is your status - employee or IC or SE?
If you are an employee they do have the right to treat you like this, however, they should have paid for your equipment and your DSL... if you are an IC you are supposed to be totally independent and not at their mercy - I can't give any advise until you clarify.  A SE is another story and not real clear myself on that status.....
I went from IC to employee status.
It was pretty much seamless for me because I was pretty much working the same hours as I am now but not getting any benefits and having to pay my own taxes. This is much better for me!!
Again, it's a little different for employee status
When an IC is subcontracting to another IC, then the hiring IC becomes the applicant's client.  So, therefore, questions do need to be asked. 
Are you looking for IC or employee status?
I firmly believe that American MTs should not even edit reports typed by foreigners on foreign land, thus enabling the whole offshoring situation. I hope you can be successful in finding a job that does not work with offshore transcriptionists. If I knew what kind of employment you would be interested in, I might be able to give you some ideas on companies.
Just my opinion.......employee status (SM)
I don't ever want to work as an IC again, mainly because of taxes. When you work as IC, you are responsible for 100% of your own Social Security Tax and taxes where as when you are an employee the company matches this money for you. I always dreaded tax time and would come out owing a lot of $ every year no matter what expenses I took off, which was also a hassle because if you didn't keep up w/ everything you ran the risk of being audited and in trouble with IRS. Add to this not much more money per line at all, the expense of owning and maintaining own computer, no PTO or vacation time, and all the other expenses, it just wasn't worth it to me. Good luck in your decision.
10 cpl/gross - employee status, SE
By line, employee status--nm
insurance with employee status
I just started with a new company and am about to enroll in insurance. For employee + family I will be paying about $160 per pay period (paid biweekly). That is with a $500 deductible per person/$1000 family. The plan also has $20 copays and a prescription plan.
Employee status question . . .

For an employee with benefis  - what happens if you don't meet the minimum line count?  How do companies enforce that?  I've always been IC and considering changing.  Thanks

How about at-home employee status, sm
on salary. That way, if they offer benefits, you would qualify for health insurance, etc.
If you can't charge on production, it becomes difficult to maintain contractor status, unless you become some sort of "consultant" for them.

Or you can be an IC and bill them hourly. If that is the case, just figure out how many hours you spend on their account and charge it accordingly to equal the yearly salary you are seeking.

Hope this helps. Good luck!
I am employee status and I am very happy...
just have to find the right company that works for you and I have :)
Yes, Medical Dictation. Have both IC and employee status
On-site employee status is not cheap either.
Oh well!
I didn't think they hired employee status.

Do receive benefits through them?  I was under the impression they only hired IC for transcriptionists, which means you are self-employed and they really don't have to give you any work.  If we all sued every time we were "jacked around" by a recruiter or an employer, there would be no more transcription companies.


IC versus employee
I have been an IC/MTSO both married and divorced for the past 15 years.  I feel that I bring home "more" of a dollar than if I were making the same amount as an employee.  I do have quite a few write offs as I do have a real "office" in the home, I take my depreciation on the house as I feel when and if I sell prior to dying, will deal with it then.  I do deliver and pick up so have mileage.  I save for my vacations and time off.  I have the flexibility to take time off during the day if needed --work at night true but I CHOSE it not someone else.   When married I just had my husband over withhold a  little more and did not need to worry about the "tax bite" on April 15th.  I planned and planned so I knew what he had to over withold.   But again, when I make over $50K and end up paying SS on only $15K or so, it is well worth it to me.   I did take a small "in-clinic" employee status this year to get out of the house as with no hubby - thank the Lord, and no kids it gets me out and I take out more of my taxes that way.  But when I did not do that, I just took 5 to 10% out of each check and put it in a special account and it was more than enough to cover my taxes.  Truly look at your paychecks as "employees" and see what you really bring home but everyone thinks that because your "employer" pays those taxes FOR you, you are not really paying them.  So you just have to do the same.  And you have to add the two salaries together even as an employee so that also hurts.  But again, I feel being self employed or IC is the only way to go.  Even when on vacation I stop in a local transcription company or a couple of clinics or hospital and talk to them about providing services so I can count part of it as a write off.   Also look for seminars in cities you want to visit.  I go to Vegas every year for the "electronic show" to see what is new for my company.  Again, if you look carefully at deductions and plan, plan, plan it is better - at least to me - financially to be an IC.    Patti -- e-mail me if you wish
IC versus employee...
Am thinking about going from employee to IC - what is involved with being an IC? Taxes, etc...would appreciate any advice from IC's. TIA
8 cpl IC versus employee
No I mean money wise what is the difference once you take out the taxes. 8 cpl as an IC is less money than 8 cpl as an employee when the employee pays half your social security
IC versus employee
I was following you until you said "my regular scheduled hours". Um, if you are IC, you shouldn't have scheduled hours, only a set amount of production within a specified time period (say 2000 lines in 24 hours). I'd say you are already crossing that IRS rule of who has control without even considering the OT issue.

But, to answer your question, they can ask for help and you can say yes or no, but you are not under any obligation to do it. As the other poster did point out, preference might be given to someone else at a later time, but IMHO, not working "every weekend" is acceptable. You can give yourself permission to take some time off. No, they do not have to pay you overtime, but you could ask for incentive pay for the work you provide on days you are not already comitted to (they will probably tell you no).
IC versus Employee
I am trying to figure out if going from employee status to IC is worth it.  Anyone have any opinions?
ic versus employee
Hate to burst your bubble to but you are better off with your own accounts. Most of the nationals out there want strict hours and a requirement of how many lines you are going to do. Some do pay a little extra for holidays and weekends but not always and most you will get stuck working on weekends as well.
ic versus employee
True definition straight from IRS is that they can make you commit to so many lines a day between so and so hours but if they say you have to do this many lines between this and this time than employee.
IC versus employee
Employee is definitely the way to go. I too was new a year ago and found a company paying .12 a line, .13 for nights. Taxes hit me really hard this year. I have to paid time off, no 401K, no sick days, no insurance. I would rather work for .10 a line and have benefits. No one should work for less than .10. I you ask me, experience transcriptionists should be making .15 a line.

I worked in Radiology and quit a job making almost $16.00/hr with six weeks paid time off after 29 years.

Now I make less, have no time off, no benefits and work harder with more hours as an IC and they don't offer employee status.
IC versus Employee??
Hey everyone. I just finished school and am doing the job search thing. Great fun right. javascript:editor_insertHTML('text','')
Anyhow, I know that I have a better shot of getting hired if I work IC but I don't know exactly what that would mean for me? Anybody have current info. on how it all works?

Thanks =0)
IC versus employee

I have to agree...it's very concerning how companies try to save $$ by hiring you as IC and not as an employee, yet try to exert much control over when and how you work.  I don't think transcriptionists are aware enough of what/how much control a company can technically exert before they are really treating you like an employee and should be paying you as such.  The IRS website discusses "behavioral control" and I would be willing that many transcription companies exert much behavioral control over the ICs, which would technically classify them as employees. 


Withholding is the same as an employee status with the exception of state tax.
Do any of you work a split shift? Are you employee status or IC? Thanks!-nm

taxes ic versus employee
Don't really understand the $$ difference between being an IC and employee when it comes to taxes.  If as an IC you get a check of $1000---and and as an employee your gross wage is $1000--what is the difference in the amount of taxes you pay as an IC versus as an employee?  I have gotten the impression you pay a lot more as an IC...is this true?  Can someone give me an idea of what the percentage or dollar amounts would be? thanks:)
Statutory versus employee
Are there any advantages to being statutory versus an employee?  Anyone out there working statutory who can help?  Thanks!
I didnt "make out well" having to take the taxes out myself. So I prefer employee status.
I highly doub that MTs (IC or employee status) have begun using Vista; even more unlikely (sm)
for company-employed MTs.  Vista will need to undergo extensive testing and scrutiny before IT Directors will approve it to be compatible with their software programs. 
Why do companies pay hiring bonuses,

advertise in hundreds of papers nationwide, spend $$ printing and mailing out postcards advertising for new MTs, when if they would just pay their current MTs 1 cpl more, or offer benefits or better benefits they wouldn't have a problem. 

It seems like in the long run they would come out better and it sure beats having to screen/train, provide equipment, etc. a dozen or more new MTs/week.  If the companies have the $$ for all of the above, why can't they pay their MTs more?  They may not be getting the line rate they used to get but the money is coming from somewhere. 

which companies still have SE status
9 cpl, 65 characters per line, spaces, headers, footers included. employee status. nm
IC versus employee, accounts, transcription type, platform,
What companies other than MQ hire statutory employees and are they hiring now.
Companies wanting MTs with IC status but not following the rules...

According to the IRS (and I'm going to double check my information on this) there is a fine line between employee, statutory or otherwise, and independent contractor.  I especially love companies/hospitals who want the benefit of not matching social security, paying unemployment taxes, benefits, and adhereing to wage determinations so they hire "independent contractors" THEN, they start dictating how and when the IC is going to perform their work and at what volume in what period of time and mandatory weekends is an especially nice touch. And the evidence of it is all over this site and others like it where jobs are posted.

I had a guy I worked for one time who went so far as to refuse to write my check out to me, had to be to a company name... then proceeded to break all the rules differentiating between employee and IC.  I would ask if these people had a clue but I already know they don't.

Clinical versus Acute Care - why do companies
advertise for clinical MTs and then send you a test for acute care?  I was told it was the only tests they had.  I've been down this road before.  Once you pass the test they place you on acute care and come up with excuses about clinical.  Sooner or later they'll get the hint - when MTs apply for clinical that is what they want to type.  No more testing for acute care for me - when I apply for clinical. 
Our country sucks when it comes to teamwork.  My experience is in hospital transcription and 95% foreign dictators.  Most of my dictators are from India and surrounding countries.  Give up you all, India is already way ahead of us!
65 character line versus gross lines versus pay by word

I am checking into other options for transcription.  Can anyone tell me how to compare all of these types of lines & also payment per word?  I know companies use different scales, so I wondered how they compare.  I have been paid on a 65 character line with spaces, but I may be making a change in the future - don't want to get burned.

Thank you in advance!

Must be a trend
We are having roast with potatoes and carrots too. Cooked in the crock pot all day. Wouldn't know what to do without it!! It's just so hard sitting here all day having to smell it. My tummy has been growling...can't wait to eat!!
I also use Trend. I just bought a new computer with Vista and it came with the computer. So far it's working great.
Excuse me but federal taxes are paid as employee by employee
The ONLY difference in IC is you pay the ENTIRE amount of the SS which is the 15.25%, as an employee you only pay 7.75%.  And you can easily make up that difference in deductions.  As an employee you just have someone else manage your withholdings and as an IC you do it yourself.  I have much more usable income being an IC and not an employee and I am strict about putting aside what I need to.  But everyone always says you have to pay your own taxes, well your employer does not PAY them for you -- except 7.75% of SS, they merely withhold it for you.  As an IC you are the employer.