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Please respone IC versus Employee Status

Posted By: Mik on 2005-09-15
In Reply to:

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!


THANK YOU!! 




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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.


 


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


Thanks


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
nm
Not IC-employee status
x
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
d
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
x
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.
xx
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.
x
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. 
9 cpl, 65 characters per line, spaces, headers, footers included. employee status. nm
 
IC versus employee, accounts, transcription type, platform,
nm
respone to annuder
I don't know where you work or get your standards of acceptable practice from.  But I also have done In and out patient hospital QA and when departments set up indicators for standards of care they set them for acceptable patient continunity of care.  If you had a suspicious mammogram and they wanted an ultrasound or a breast biopsy to confirm the findings would you want to wonder for 3-months if it was malignant or not?  That is not quality health care that is crap healthcare.  The standards that were set up for that specific situation by the "HMO" (HMO's often times get the worst rap for wait times) was 48 hours from suspicious finding to definitive diagnosis and we called those 48 hours "sleepless nights".  A hospital that is worth anything will have an orthopedic surgeon on call to do surgery on an acute fracture and won't just keep the patient zonked on pain meds until the doc gets back to work from his weekend off.  I waited exactly 2 days for my MRI/Arthrogram when I tore my rotator cuff.  I don't know where you work or get your medical care at but what you say is acceptable is lousy patient care.
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!


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. 
Question versus gross lines versus 65-character lines....

I have always charged or been paid by 65 or 60 character lines or per letter or space typed, but have never been paid or charged per gross line.


What is the advantage of this?  If I were to charge 11 cents per 65-character line including spaces, what does this figure out to for an average line rate and how do you do this calculation? 


I'm wondering if it is financially beneficial for me to bill by gross line or to keep it the way I have it.  I do know some accounts will only pay per 65-character line, as this was the deal my first own account I recently acquired.  They were adamant on a 65-character line, but didn't specify with or without spaces and I personally would never not charge for spaces.


Thanks for explaining this.  I appreciate it and hope everyone has a speedy day.


You an IC, statutory employee or employee?
That designation, and/or forcing the IRS to designate you, can make a diff. Are you a corporation? Partnership? You need WAY more help than we can give you.
If you are employee, unless suit against your employee
otherwise the posts on here as far as I can see telling it like it is. I think a lot of the posts are so young they just donít have a clue as to what it means to be an employee. You do as your employee wants (I am talking reason now, not stupidity as far as sexual advances, etc) or else you find another company that fits your personality better. You do not confront, you do not tell your employee no, that is their job, not yours. This is such a simple thing for people who have been in the work force for any period of time.
What status are you?


An employer should constantly evaluate the employment status of its workers to ascertain if any of them should be reclassified from an independent contractor to an employee. Misclassifying a worker could end up being quite costly in terms of time, money, and resources. If an employer is forced to reclassify independent contractors as employees, the payment of back taxes, penalties, and interest could create major financial problems. Ultimately, the risks of incorrect classification are borne by the employer. 


 


These factors should be used as indicators to determine whether sufficient control exists for a worker to be classified as an employee. However, they should serve only as a guide. They are subjective in nature, and each factor may not be present in all situations. Moreover, the weight apportioned to each one is not always constant. No single factor can determine a worker's status; all must be used in conjunction with each other to assess whether sufficient control is present to establish an employee-employer relationship. They are as follows.


 


1. Instructions. If the person for whom the services are rendered has the right to instruct the worker how, when, and where to work, then the worker is ordinarily an employee. This control factor is present if the employer retains the right to require compliance with the instructions, irrespective of whether the employer actually exerts the right to control. The instructions can be either oral or in the form of manuals and/or written procedures that state the details and means in which the result is to be achieved. In contrast, an independent contractor is responsible only for the end result.


 


2. Training. An employer trains workers by requiring them to work with experienced employees, holding training meetings, corresponding with them, or any of several other methods. By training a worker, the employer explicitly or implicitly states that the services to be rendered must be performed in a particular manner. The employer demonstrates a right to control by teaching the worker to achieve the desired results in that manner. Independent contractors, however, use their own methods and means to obtain a result and do not receive training from an employer.


 


3. Integration. If a worker's services are integrated into the business operations, then the worker is generally subject to direction and control. When the success or continuation of a business depends to an appreciable degree on the performance of certain services by a worker, those services are assumed to be subject to a certain amount of control by the employer.


 


4. Services Rendered Personally. The requirement that services must be rendered personally by the worker indicates that the employer is interested in the methods used to accomplish the work as well as in the result. Generally, inability to delegate the services to another individual indicates that the employer controls the details and means by which a result is to be achieved.


 


5. Hiring, Supervising, and Paying Assistants. if the employer hires, supervises, and pays a worker's assistants, then the employer has control over those assistants and the worker should be considered an employee. However, if the worker hires, supervises, and pays his own assistants and provides the employer with materials and labor under a contract in which the worker is responsible only for the results, he is an independent contractor.


 


6. Continuing Relationship. Continuous interaction between the worker and employer indicates an employee relationship. Such a relationship may exist in which work is performed at frequently recurring, though irregular, intervals.


 


7. Set Hours of Work. Establishing certain hours in which a worker is to perform a job indicates an employer's control. The fact that an employer can dictate a worker's hours is indicative of an employee relationship.


 


8. Full Time Required. If a worker must devote full time to the employer's business, the employer has control over the amount of time the individual actually spends working and, by implication, restricts the worker from performing other gainful work. In contrast, independent contractors are free to work when and for whom they choose.


 


9. Doing Work on Employer's Premises. Workers required to perform their services on the employer's premises when the work could be performed elsewhere are under the employer's control, which is beyond that which would ordinarily be exerted over an independent contractor. The importance of this factor depends on the nature of the services involved and the extent to which an employer generally requires its employees to perform services on its premises. Control over the place of work is indicated when the employer compels the worker to travel a designated route, canvass a territory within a certain time, or work at a specific place.


 


10. Order or Sequence Set. If an employer has the right to indicate the order or sequence in which work is to be performed, then the worker is probably an employee, particularly if the same results can be achieved in a different order or sequence.


 


11. Oral or Written Reports. The requirement that a worker submit regular reports to the employer can indicate a degree of control. It means the worker must account for his actions on the job to the employer.


 


12. Payment by the Hour, Week, or Month. When a worker is paid by the hour, week, or month and such payment is guaranteed, whether or not certain results are achieved, the worker is generally an employee. In contrast, payments made by the job or on a straight commission basis generally indicate that the worker is an independent contractor.


 


13. Payment of Business and/or Traveling Expenses. The IRS is of the view that when an employer pays a worker's business or traveling expenses, the worker is ordinarily an employee. Conversely, a worker who is paid on a job basis and must pay all incidental expenses is generally an independent contractor. Another issue to consider when evaluating this factor is the agreement between the employer and worker as to how such expenses are to be paid.


 


14. Furnishing Tools and Materials. If the employer furnishes tools, materials, and other equipment for a job, this indicates that the worker is an employee. Independent contractors ordinarily furnish their own tools and materials. In determining what the classification should be, the value of the tools and materials supplied to the worker should be considered as well.


 


15. Significant Investment. A significant investment by a worker in the facilities used in performing services for another is a factor that often establishes an independent contractor relationship. Conversely, the lack of investment in facilities indicates a dependence on the employer for the facilities--which means an employee relationship exists. The rationale is that whoever provides the equipment necessary to perform the services controls the use of the equipment.


 


16. Realization of Profit or Loss. A worker who stands the risk of suffering a financial loss or realizing financial gain as a result of providing services to the employer is generally an independent contractor. In contrast, a worker who has no risk of financial loss is usually an employee.


 


17. Working For More Than One Firm. If a worker performs services for more than one unrelated person or firm at the same time, it generally indicates that the worker is an independent contractor.


 


18. Making Services Available to the Public. Workers who make their services available to the general public on a regular and consistent basis are usually independent contractors.


 


19. Right to Discharge. Employers generally possess the right to discharge only employees. The threat of dismissal demonstrates a degree of control over workers. In contrast, the IRS's viewpoint is that independent contractors cannot be fired unless they violate the terms of the contract for services rendered.


 


20. Right to Terminate. If the worker providing the services can terminate the relationship with the employer at any time without incurring liability, an employee relationship usually exists. Conversely, an independent contractor engaged to accomplish a task or provide a service may incur a legal liability if the relationship is unilaterally terminated before the results of the task are accomplished.


 


These 20 factors may not always be appropriate for determining a worker's employment status, especially in the case of a professional, such as a physician, lawyer, or dentist. Control may not be the dominant issue in determining a professional's employment status. Revenue Rulings 72-203 and 66-274 state that other factors should be considered when determining the employment status of a professional, taking into consideration the skill required for the task, the intent of the parties involved in the employment relationship, and the custom in the industry.


IC - status

Have been an IC-MTSO for close to 20 years.  Deduct my office part of the house, phone, internet, cell phone, mileage for anything work related including banking, errands,  (of course  I pick up and deliver and that give me a $5,000 write off), medical insurance payments, retirement contributions,  supplies,  partial utilities.   Start out with 50 to 55K and pay my SS taxes on 12 to 15K.  To me it is well worth it.  I always over withheld from my husband pay check or just paid the small penalty at the end of the year but you can do quarterlies.   I went to a tax guy for one year saw how he did it and then just bought Turbo Tax and followed him.   Works well for me.   Sure his fee is deductible but you still gotta pay it.  I prepared so much for him that I felt I could just as easily plug those figures in as his "help" so that is what I do.  Any more questions, youcan e-mail me at pjsword @aol.com.


Patti


IC status
Just discussed a few days ago, do a search and it will come up.  If not I will let you know but just wrote a long answer to this last week. 
For the SE status
Because where I live it is rural and both hospitals outsource, one to MQ, the other to another big trans service.  While being an SE, I had a flexible schedule which my TC allowed me to work around my other full time job as that one was not flexible.  In order to move on, most companies do not supply the equipment and I did not want to put out another $1,000+ on another computer when I had just updated the MQ computer in the year 2000 and again in 10/2004, to transition to DQS.  So, I stuck around thinking well being an SE at least, if nothing else, I have flexibility.  Well, I have nothing anymore, the flexibility made everything else tolerable.  Nothing with MQ is tolerable anymore.  However, the new company I just hired on with has better pay per line, higher tier, higher differential and higher incentives plus, IMHO, better benefits.  To all of you MQ lovers, great, glad you have a job you love, however, I sure wish you would check around, talk to some recruiters..You will be amazed at what other companies offer.
IC status

I have a question about independent contractor status. Have do you pay taxes? Can you deduct office supplies, electricity, etc? If anyone have information please let me know. Thank you.